DEPARTMENT OF THE ARMY - GlobalSecurity.org...o FY 2006: The Army projects to end FY 2006 with end strength of 498,700 or 16,300 (7,800 work-years) above the baseline budget request

DEPARTMENT OF THE ARMYFISCAL YEAR (FY) 2007 BUDGET ESTIMATES

MILITARY PERSONNEL, ARMYJUSTIFICATION BOOK

VOLUME I – ACTIVE FORCES

FEBRUARY 2006

DEPARTMENT OF THE ARMY JUSTIFICATION OF ESTIMATES FOR FY 2007

TABLE OF CONTENTS

SECTION 1 - SUMMARY OF REQUIREMENTS BY BUDGET PROGRAM ............................................................................................... 1 SECTION 2 - INTRODUCTION ............................................................................................................................ 3 PERFORMANCE MEASURES AND EVALUATION SUMMARY........................................................................................................ 7

SECTION 3 - SUMMARY TABLES .......................................................................................................................... 8 PERSONNEL SUMMARIES................................................................................................................................ 8 SUMMARY OF ENTITLEMENTS BY SUBACTIVITY............................................................................................................ 17 ANALYSIS OF APPROPRIATION CHANGES................................................................................................................. 22 SCHEDULE OF INCREASES AND DECREASES............................................................................................................... 26

SECTION 4 - DETAIL OF MILITARY PERSONNEL ENTITLEMENTS .............................................................................................. 29 PAY AND ALLOWANCES OF OFFICERS.................................................................................................................... 29 PAY AND ALLOWANCES OF ENLISTED PERSONNEL.......................................................................................................... 67 PAY AND ALLOWANCES OF CADETS..................................................................................................................... 114 SUBSISTENCE OF ENLISTED PERSONNEL................................................................................................................ 117 PERMANENT CHANGE OF STATION TRAVEL............................................................................................................... 121 OTHER MILITARY PERSONNEL COSTS................................................................................................................... 142

SECTION 5 - SPECIAL ANALYSIS ...................................................................................................................... 173 MILITARY PERSONNEL, ARMY DWCF REIMBURSEMENT PROGRAM.............................................................................................. 173 REIMBURSABLE PROGRAM............................................................................................................................. 174

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SECTION 1 SUMMARY OF REQUIREMENTS BY BUDGET PROGRAM (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 DIRECT BASELINE PROGRAM PAY AND ALLOWANCES FOR OFFICERS...................... $ 7,825,667 $ 7,848,941 $ 8,121,539 PAY AND ALLOWANCES FOR ENLISTED...................... 19,611,005 17,306,027 18,244,646 PAY AND ALLOWANCES FOR CADETS........................ 51,510 53,392 55,818 SUBSISTENCE OF ENLISTED PERSONNEL.................... 1,457,888 1,334,152 1,405,637 PERMANENT CHANGE OF STATION TRAVEL................... 826,413 1,089,652 996,579 OTHER MILITARY PERSONNEL COSTS....................... 84,566 277,210 287,684 TOTAL DIRECT BASELINE PROGRAM........................ $ 29,857,049 $ 27,909,374 $ 29,111,903 REIMBURSABLE BASELINE PROGRAM PAY AND ALLOWANCES FOR OFFICERS...................... $ 110,496 $ 182,136 $ 199,575 PAY AND ALLOWANCES FOR ENLISTED...................... 123,403 79,402 80,992 PAY AND ALLOWANCES FOR CADETS........................ 0 0 0 SUBSISTENCE OF ENLISTED PERSONNEL.................... 24,440 34,463 35,808 PERMANENT CHANGE OF STATION.......................... 2,129 2,173 2,219 OTHER MILITARY PERSONNEL COSTS....................... 103 0 0 TOTAL REIMBURSABLE BASELINE PROGRAM.................. $ 260,571 $ 298,174 $ 318,594 TOTAL BASELINE PROGRAM PAY AND ALLOWANCES FOR OFFICERS...................... $ 7,936,163 $ 8,031,077 $ 8,321,114 PAY AND ALLOWANCES FOR ENLISTED...................... 19,734,408 17,385,429 18,325,638 PAY AND ALLOWANCES FOR CADETS........................ 51,510 53,392 55,818 SUBSISTENCE OF ENLISTED PERSONNEL.................... 1,482,328 1,368,615 1,441,445 PERMANENT CHANGE OF STATION TRAVEL................... 828,542 1,091,825 998,798 OTHER MILITARY PERSONNEL COSTS....................... 84,669 277,210 287,684 TOTAL BASELINE PROGRAM............................... $ 30,117,620 $ 28,207,548 $ 29,430,497

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SECTION 1 SUMMARY OF REQUIREMENTS BY BUDGET PROGRAM (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 GWOT SUPPLEMENTAL FUNDING -- FY 2005 (TITLE IX OF P.L. 108-287; P.L. 109-13); FY 2006 (TITLE IX OF P.L. 109-148) PAY AND ALLOWANCES FOR OFFICERS...................... $ 2,314,811 $ 1,187,486 $ 0 PAY AND ALLOWANCES FOR ENLISTED...................... 7,382,398 3,128,676 0 PAY AND ALLOWANCES FOR CADETS........................ 0 0 0 SUBSISTENCE OF ENLISTED PERSONNEL.................... 1,496,446 254,058 0 PERMANENT CHANGE OF STATION TRAVEL................... 176,397 108,210 0 OTHER MILITARY PERSONNEL COSTS....................... 592,454 141,815 0 TOTAL GWOT PROGRAM................................... 11,962,506 4,820,245 0 HURRICANE SUPPLEMENTAL FUNDING -- FY 2005 (P.L. 108-324; P.L. 109-61; P.L. 109-62); FY 2006 (P.L. 109-148 DIVISION B, TITLE IX) PAY AND ALLOWANCES FOR OFFICERS...................... $ 0 $ 0 $ 0 PAY AND ALLOWANCES FOR ENLISTED...................... 0 0 0 PAY AND ALLOWANCES FOR CADETS........................ 0 0 0 SUBSISTENCE OF ENLISTED PERSONNEL.................... 0 0 0 PERMANENT CHANGE OF STATION TRAVEL................... 20,100 25,353 0 OTHER MILITARY PERSONNEL COSTS....................... 0 0 0 TOTAL HURRICANE PROGRAM.............................. 20,100 25,353 0 TOTAL PROGRAM PAY AND ALLOWANCES FOR OFFICERS...................... $ 10,250,974 $ 9,218,563 $ 8,321,114 PAY AND ALLOWANCES FOR ENLISTED...................... 27,116,806 20,514,105 18,325,638 PAY AND ALLOWANCES FOR CADETS........................ 51,510 53,392 55,818 SUBSISTENCE OF ENLISTED PERSONNEL.................... 2,978,774 1,622,673 1,441,445 PERMANENT CHANGE OF STATION TRAVEL................... 1,025,039 1,225,388 998,798 OTHER MILITARY PERSONNEL COSTS....................... 677,123 419,025 287,684 TOTAL PROGRAM........................................ $ 42,100,226 $ 33,053,146 $ 29,430,497 MEDICARE-ELIGIBLE RETIREE HEALTH FUND CONTRIBUTION............................... $ 0 $ 2,727,452 $ 2,891,198 TOTAL MILITARY PERSONNEL PROGRAM COST................... $ 42,100,226 $ 35,780,598 $ 32,321,695 LEGISLATIVE PROPOSALS: THE FOLLOWING LEGISLATIVE PROPOSALS ARE INCLUDED IN THE ABOVE ESTIMATE AND SUBMITTED FOR FY 2007: TEMPORARY CONTINUATION OF BASIC ALLOWANCE FOR HOUSING FOR DEPENDENTS OF MEMBERS WHO DIE WHILE SERVING ON ACTIVE DUTY - MEMBER MARRIED TO ANOTHER MEMBER $ .230 MILLION

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Section 2

Introduction

The American Soldier -– superbly trained, equipped, and led -- is the centerpiece of the Army’s combat formations and systems. The Military Personnel, Army (MPA) appropriation provides the resources needed to compensate those active duty Soldiers who man the Army’s force structure as it transforms to the Army’s Modular Forces design. In addition to personnel in the force structure, the appropriation also provides compensation for personnel in the individual accounts: students, trainees, transients, cadets, and holdees (holdees include patients and others). The Army’s manning goal is to provide, in a timely manner, the right number of high quality Soldiers in the appropriate grades and skills to satisfy force structure authorizations. Accomplishing this goal ensures a high degree of personnel and combat readiness in units.

The FY 2007 budget continues to emphasize Army transformation towards the future, while

providing our Soldiers with what they need for the current fight. America’s All-Volunteer Army, the world’s dominant land force, remains actively engaged in the Global War on Terrorism (GWOT). Current and future MPA funding levels are critical indicators of our nation’s commitment to maintain the all-volunteer force. MPA also funds the Army’s continuing commitment to taking care of Soldiers’ families, allowing Soldiers to remain focused on their primary duties. The current operational environment does impact our recruiting and retention efforts, so this budget provides a baseline level of incentives to allow the Army to continue to attract and retain the right people. Management Characteristics of MPA MPA is a centrally managed, single-year, appropriation which funds pay and allowances, monetary benefits/incentives, subsistence, and permanent change of station (PCS) costs for Soldiers. Entitlements are set by statute, with the biggest cost driver being the average number of personnel on active duty. There are other factors, such as overseas strength, percentage of married personnel, and personnel policy, which also impact heavily on requirements in this appropriation. Major Changes in the Active Army Budget Estimates Like the FY 2006 budget the 2007 estimate (excluding contingency operations) is based on a 482,400 man-years program for FY 2007. The permanent minimum level end-strength is 502,400. Funding for end strength above the baseline level of 482,400 will be requested through FY 2007 Supplemental Appropriations. End Strength

In FY 2006 and FY 2007, the Army needs to continue to increase its end strength to meet deployment commitments in support of the GWOT and to convert to Army Modular Force structure which will add 9 new active duty Brigade Combat Teams (BCTs) by 2007 (growing to 42 from 33

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brigades in FY 2003.) The result will be the creation of a larger pool of more capable and lethal units for rotational deployments tailored to meet the Combatant Commander’s requirements. The required resources for the increase in end strength above the baseline level are not included in the President’s budget.

o FY 2006: The Army projects to end FY 2006 with end strength of 498,700 or 16,300

(7,800 work-years) above the baseline budget request. The cost estimate for this additional end strength is about $.644 billion (pay and allowances only) and will be requested in the Department's supplemental request for contingency operations.

End Strength Current Plan 498,700 Current Funded Level 482,400

Difference +16,300

o FY 2007: Since the GWOT military operations are inherently unpredictable and not part of routine force deployments, the Army plans to seek supplemental funding in FY 2007 for the additional end strength above the baseline level of 482,400.

End Strength Permanent Minimum Level 502,400 FY 2007 Budget Estimate 482,400

Difference +20,000

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Other Changes

• The annualized 2006 DOD military pay raise of 3.1% with a 1 January 2006 effective date is budgeted.

• The 2007 DOD military 2.2% across-the-board pay raise of with selective increases for

certain warrant officers and mid-grade senior enlisted personnel is also budgeted assuming a 1 April 2007 effective date.

• The normal cost percentage used to calculate payments to the military retired pay trust

fund is 26.5% in FY 2006 and FY 2007. • The rates for subsistence are indexed to the annual changes in the US Department of

Agriculture food plan. • The estimates for overseas station allowances are based on rates of exchange of €0.8530

Euro/$1 U.S. • BAH housing growth is an overall 6.0%, effective 1 January 2006. • BAH – Residential Communities Initiative (RCI). The RCI program is a highly successful

Army initiative to leverage private capital to alleviate housing shortages, rapidly improve the condition of existing housing and eliminate inadequate family housing. This initiative is fully funded in FY 2007. This program focuses on developing and managing communities and embraces comprehensive planning and execution, as opposed to piecemeal projects. The following installations are funded through FY 2007: Carson, Hood, Lewis, Meade, Hamilton, Bragg, Campbell, Irwin, Stewart, Polk, Eustis, Detrick, Shafter, Walter Reed Medical Center, Picatinney Arsenal, Schofield Barracks, Hunter Army Airfield, Moffet Field, Presidio of Monterey, Leonard Wood, Drum, Sam Houston, Carlisle Barracks, Monmouth, Benning, Knox, Rucker, Leavenworth, Gordon, Redstone Arsenal, McPherson, Riley, White Sands Missile Range, Belvoir, Lee, and Bliss.

• The Department of Defense is committed to reducing the unexpended/unobligated balances

occurring annually in the military personnel appropriations. As part of the FY 2007 budget formulation, and in recognition of Congressional action on the FY 2006 budget the military personnel budget estimates were reduced by over $300 million to account for historical unexpended/unobligated balances. These reductions were based on the methodology used by the General Accountability Office. The FY 2007 Military Personnel, Army budget estimate was reduced by $136.8 million. In addition to the funding reductions, the Service Components and the Defense Finance and Accounting Service are working together to:

o Develop the lowest, achievable percentage level of unobligated/unexpended balances,

o Develop a Financial Improvement Plan with specific tasks that will be performed to reduce the unobligated/unexpended balances,

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o Add the necessary personnel resources to improve execution data collection, and o Closely monitor, through metrics reporting the progress, to reduce MILPERS

appropriation unobligated/unexpended balances to the lowest, achievable percentage level by the end of each appropriation’s 5 year availability.

• The Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (P.L. 108-

375) provided permanent, indefinite appropriations to finance the cost of TRICARE benefits accrued by uniformed service members. Previously, the military personnel accounts were required to pay the accrued costs, using annual appropriations. Since these costs are actually borne in support of the Department of Defense, they will be shown as part of the DoD discretionary total. Ten new accounts corresponding to each of the existing military personnel accounts have been created to show the cost of these payments. Beginning in FY 2006, the appropriations requested for the military personnel accounts exclude funding to make the retiree health accrual payments. Total obligations on behalf of military personnel include both the amounts requested for appropriation and amounts paid from the permanent, indefinite authority.

Global War On Terrorism

This baseline MPA appropriation request does not include estimates for Global War on Terrorism (GWOT). As necessary the Army will seek supplemental appropriations to finance the incremental military personnel costs above the baseline budget for on-going military operations (Operation Enduring Freedom (OEF) and Operation Iraqi Freedom (OIF)). In FY 2005, PL 109-13 Emergency Supplemental Appropriations for Defense, GWOT, and Tsunami Relief, provided the Army with $12.0 billion to sustain military operations in Iraq, Afghanistan, and elsewhere. For FY 2006 the Congress provided advance appropriations of $4.8 billion to finance this requirement in Public Law PL 109 - 163, Title IX, FY 2006 Department of Defense Appropriations Act.

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MILITARY PERSONNEL, ARMYPerformance Measures and Evaluation Summary

Activity: Active Military Personnel Activity Goal: Maintain the correct Active Military Personnel to execute National Strategy. Description of Activity: The Active Military Personnel appropriation provides resources necessary to compensate military personnel required to man approved force structure and support infrastructure, which includes pay, allowances, individual clothing, subsistence, and permanent changes of station. PERFORMANCE MEASURES:

FY 2005 Actual FY 2006 Planned FY 2007 Planned Average Strength 614,800 529,198 484,313 End Strength 492,728 498,700 482,400 Authorized End Strength 502,400 502,400 502,400 Additional End Strength FY 2005 NDAA authorized an increase to end strength of 20K. This brings the Army’s end strength to 502.4K in FY 2005. This metric measures the variance in planned versus actual man-years. This display provides the information to meet the Office of Management and Budget requirement for PART-Program Assessment Rating Tool. Recruiting 1. Numeric goals 80,000 80,000 80,000 Actual 73,974 - Total Recruiting mission is compared to actual accessions for the fiscal year. The percent goal accomplished is the measurement. Narrative: Recruiting goals were not met for FY 2005 due to the challenges in recruiting environment, challenges due to increased alternatives for youth, the historically low propensity to enlist, and the increased operating tempo. In addition, the goals for FY 2006 and FY 2007 will change due to the temporary 30,000-end strength increase. 2. Quality goals

a. HSDG percent (Tier I) 90% 90% 90% Actual 87% b. Test Score Category I-IIIA percent 67% 60% 60%

Actual 67%

a. The percent Tier 1 High School Degree Graduate (HSDG) is the measure, which is a measure of educational achievement – Total number of Tier 1 (HSDG) non-prior service accessions + Delayed Entry Program (DEP) is compared to total number of non-prior service accessions + DEP for the fiscal year. (DOD target is 90%)

Narrative: Quality goals serve as a screening mechanism; the Army does not directly resource to quality levels. Recruiting efforts focus on high school degree graduates and graduating seniors who are Cat I-IIIA. b. The percent of Cat I-IIIA is the measure – Total number of non-prior service accessions + DEP who scored at or above 50th percentile (Cat

I-IIIA) is compared to total number of non-prior service accessions + DEP for the fiscal year. (DOD target is 60%. Cat I-IIIA – scores at or above 50 on the Armed Forces Qualification Test (measure of aptitude). Cat IV – percentages are not shown as the Services historically have no difficulty meeting the 4% limitation.)

Narrative: Quality goals serve as a screening mechanism; the Army does not directly resource to quality levels. Recruiting efforts focus on high school degree graduates and graduating seniors who are Cat I-IIIA. The implementation of upgraded Armed Services Vocational Aptitude Battery norms may impact quality achievement in the future as enlistment standards will increase.

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SECTION 3 SUMMARY OF MILITARY PERSONNEL STRENGTH FY 2005 ACTUAL FY 2006 ESTIMATE FY 2007 ESTIMATE AVERAGE END STRENGTH AVERAGE END STRENGTH AVERAGE END STRENGTH STRENGTH 30 SEP 2005 STRENGTH 30 SEP 2006 STRENGTH 30 SEP 2007 DIRECT BASELINE PROGRAM OFFICERS............................. 80,547 81,023 77,840 78,017 77,666 78,167 ENLISTED............................. 407,398 406,032 400,933 398,859 401,107 398,709 ACADEMY CADETS....................... 4,041 4,149 4,016 4,000 4,016 4,000 TOTAL DIRECT PROGRAM............... 491,986 491,204 482,789 480,876 482,789 480,876 REIMBURSABLE BASELINE PROGRAM OFFICERS............................. 633 633 633 633 633 633 ENLISTED............................. 891 891 891 891 891 891 TOTAL REIMBURSABLE PROGRAM......... 1,524 1,524 1,524 1,524 1,524 1,524 TOTAL BASELINE PROGRAM OFFICERS............................. 81,180 81,656 78,473 78,650 78,299 78,800 ENLISTED............................. 408,289 406,923 401,824 399,750 401,998 399,600 ACADEMY CADETS....................... 4,041 4,149 4,016 4,000 4,016 4,000 TOTAL BASELINE PROGRAM............. 493,510 492,728 484,313 482,400 484,313 482,400 GWOT SUPPLEMENTAL -- FY 2005 (TITLE IX OF P.L. 108-287; P.L. 109-13); FY 2006 (TITLE IX OF P.L. 109-148) 1/ 2/ OFFICERS............................. 15,908 0 9,040 0 ENLISTED............................. 105,382 0 35,845 0 SUPPLEMENTAL FUNDED STRENGTH....... 121,290 0 44,885 0 HURRICANE SUPPLEMENTAL -- FY 2005 (P.L. 108-324; P.L. 109-61; P.L. 109-62); FY 2006 (P.L. 109-148 DIVISION B, TITLE IX) OFFICERS............................. 0 0 ENLISTED............................. 0 0 SUPPLEMENTAL FUNDED STRENGTH....... 0 0 REVISED TOTAL PROGRAM OFFICERS............................. 97,088 81,656 87,513 78,650 78,299 78,800 ENLISTED............................. 513,671 406,923 437,669 399,750 401,998 399,600 ACADEMY CADETS....................... 4,041 4,149 4,016 4,000 4,016 4,000 REVISED TOTAL PROGRAM.............. 614,800 492,728 529,198 482,400 484,313 482,400 /1 FY 2005 AVERAGE STRENGTH INCLUDES 14,989 OFFICER AND 101,610 ENLISTED MOBILIZED RESERVE COMPONENTS PERSONNEL IN SUPPORT OF OEF/OIF. /2 FY 2006 AVERAGE STRENGTH INCLUDES 8,104 OFFICER AND 33,349 ENLISTED MOBILIZED RESERVE COMPONENTS PERSONNEL IN SUPPORT OF OEF/OIF.

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SECTION 3 END STRENGTHS BY GRADE (TOTAL PROGRAM) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 REIMB REIMB REIMB 30 SEPT INCLUDED 30 SEPT INCLUDED 30 SEPT INCLUDED COMMISSIONED OFFICERS GEN.................................. 10 0 10 0 10 0 LTG.................................. 45 0 41 0 41 0 MG................................... 100 2 99 2 99 2 BG................................... 152 4 151 4 151 4 COL.................................. 3,775 29 3,554 29 3,554 29 LTC.................................. 9,134 78 8,745 78 8,745 78 MAJ.................................. 14,835 155 13,888 155 13,888 155 CPT.................................. 24,967 228 24,178 228 24,177 228 1LT.................................. 7,490 117 8,431 117 8,431 117 2LT.................................. 8,666 2 7,244 2 7,244 2 TOTAL COMMISSIONED OFFICERS....... 69,174 615 66,341 615 66,340 615 WARRANT OFFICERS CW5.................................. 413 1 442 1 447 1 CW4.................................. 1,649 4 1,589 4 1,609 4 CW3.................................. 3,344 6 3,264 6 3,304 6 CW2.................................. 4,807 6 4,707 6 4,765 6 WO1.................................. 2,269 1 2,307 1 2,335 1 TOTAL WARRANT OFFICERS............. 12,482 18 12,309 18 12,460 18 TOTAL OFFICER PERSONNEL............ 81,656 633 78,650 633 78,800 633 ENLISTED PERSONNEL SGM.................................. 3,409 23 3,142 23 3,141 23 1SG/MSG.............................. 10,692 45 10,490 45 10,486 45 PSG/SFC.............................. 37,810 158 37,106 158 37,092 158 SSG.................................. 59,885 197 57,322 190 57,301 190 SGT.................................. 77,338 184 72,375 191 72,348 191 CPL/SPC.............................. 110,495 158 110,893 158 110,850 158 PFC.................................. 60,360 110 54,062 110 54,041 110 PV2.................................. 26,917 13 31,230 13 31,219 13 PV1.................................. 20,017 3 23,130 3 23,122 3 TOTAL ENLISTED PERSONNEL........... 406,923 891 399,750 891 399,600 891 TOTAL OFF & ENL PERSONNEL............. 488,579 1,524 478,400 1,524 478,400 1,524 CADETS................................. 4,149 0 4,000 0 4,000 0 TOTAL END STRENGTH..................... 492,728 1,524 482,400 1,524 482,400 1,524

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MPA FINANCIAL MANAGEMENT SYSTEM SECTION 3 MONTHLY END STRENGTHS BY PAY GRADE FY 2005 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP COMMISSIONED OFFICERS GEN........................ 11 11 11 11 11 11 11 11 11 11 11 10 LTG........................ 38 39 39 40 40 41 42 43 43 43 44 45 MG......................... 103 103 100 101 100 102 101 103 103 103 103 100 BG......................... 151 152 151 154 152 150 150 151 150 149 151 152 COL........................ 3,694 3,732 3,744 3,740 3,736 3,750 3,769 3,806 3,796 3,816 3,794 3,775 LTC........................ 9,164 9,228 9,303 9,283 9,303 9,304 9,316 9,284 9,307 9,303 9,278 9,134 MAJ........................ 14,397 14,357 14,365 14,350 14,346 14,695 14,589 14,559 14,511 14,338 14,280 14,835 CPT........................ 22,466 24,212 24,018 24,089 24,060 23,930 24,394 23,942 24,154 23,879 23,725 24,967 1LT........................ 9,857 9,921 9,982 9,899 9,931 9,722 9,402 9,490 9,425 9,704 9,608 7,490 2LT........................ 8,500 6,496 6,572 6,853 6,616 6,429 6,310 7,840 8,231 8,104 8,208 8,666 TOTAL.................... 68,381 68,251 68,285 68,520 68,295 68,134 68,084 69,229 69,731 69,450 69,202 69,174 WARRANT OFFICERS CW5........................ 431 431 439 437 430 428 425 422 419 419 421 413 CW4........................ 1,584 1,588 1,597 1,609 1,617 1,624 1,625 1,640 1,653 1,694 1,678 1,649 CW3........................ 3,491 3,476 3,481 3,459 3,445 3,444 3,438 3,431 3,403 3,349 3,350 3,344 CW2........................ 4,665 4,699 4,684 4,748 4,721 4,741 4,757 4,768 4,800 4,802 4,806 4,807 WO1........................ 2,153 2,121 2,099 2,021 2,072 2,087 2,108 2,131 2,146 2,183 2,199 2,269 TOTAL.................... 12,324 12,315 12,300 12,274 12,285 12,324 12,353 12,392 12,421 12,447 12,454 12,482 TOTAL OFFICERS............... 80,705 80,566 80,585 80,794 80,580 80,458 80,437 81,621 82,152 81,897 81,656 81,656 ENLISTED PERSONNEL SGM........................ 3,373 3,362 3,352 3,485 3,444 3,449 3,423 3,402 3,398 3,362 3,387 3,409 1SG/MSG.................... 11,145 11,297 11,436 11,430 11,397 11,503 11,453 11,352 11,231 11,069 10,783 10,692 PSG/SFC.................... 37,663 37,705 38,040 39,125 39,101 38,988 38,932 38,795 38,619 38,395 38,158 37,810 SSG........................ 58,376 58,484 58,498 58,325 58,705 58,870 58,960 59,005 59,136 59,231 59,395 59,885 SGT........................ 75,249 75,044 75,175 76,023 76,370 78,363 78,840 78,850 78,147 78,123 77,259 77,338 CPL/SPC.................... 116,537 116,665 115,500 113,784 114,083 112,970 112,886 112,858 111,503 110,470 110,685 110,495 PFC........................ 61,589 60,671 59,739 59,915 59,254 58,883 57,854 57,256 58,249 59,117 59,610 60,360 PV2........................ 31,170 31,124 31,681 32,013 31,477 31,147 30,050 29,064 27,273 27,558 27,371 26,917 PV1........................ 18,684 18,543 16,010 16,046 15,579 14,339 13,574 13,445 15,992 16,618 18,671 20,017 TOTAL ENLISTED........... 413,786 412,895 409,431 410,146 409,410 408,512 405,972 404,027 403,548 403,943 405,319 406,923 CADET/MIDSHIPMEN............. 4,125 4,123 4,096 4,089 4,083 4,071 4,063 3,064 4,271 4,189 4,173 4,149 TOTAL END STRENGTH........... 498,616 497,584 494,112 495,029 494,073 493,041 490,472 488,712 489,971 490,029 491,148 492,728

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SECTION 3 AVERAGE STRENGTHS BY GRADE (TOTAL PROGRAM) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 REIMB REIMB REIMB 30 SEPT INCLUDED 30 SEPT INCLUDED 30 SEPT INCLUDED COMMISSIONED OFFICERS GEN.................................. 11 0 10 0 10 0 LTG.................................. 41 0 43 0 43 0 MG................................... 117 2 103 2 103 2 BG................................... 181 4 157 4 157 4 COL.................................. 4,421 29 4,074 29 3,593 29 LTC.................................. 11,520 78 10,044 78 8,894 78 MAJ.................................. 18,255 155 15,937 155 14,297 155 CPT.................................. 28,009 228 27,172 228 24,492 228 1LT.................................. 11,995 117 9,368 117 8,188 117 2LT.................................. 8,410 2 7,216 2 6,400 2 TOTAL COMMISSIONED OFFICERS....... 82,960 615 74,124 615 66,177 615 WARRANT OFFICERS CW5.................................. 486 1 458 1 414 1 CW4.................................. 2,117 4 1,786 4 1,619 4 CW3.................................. 3,927 6 3,368 6 3,013 6 CW2.................................. 5,361 6 5,359 6 4,875 6 WO1.................................. 2,237 1 2,418 1 2,201 1 TOTAL WARRANT OFFICERS............. 14,128 18 13,389 18 12,122 18 TOTAL OFFICER PERSONNEL............ 97,088 633 87,513 633 78,299 633 ENLISTED PERSONNEL SGM.................................. 4,154 23 3,489 23 3,135 23 1SG/MSG.............................. 14,885 45 11,652 45 10,663 45 PSG/SFC.............................. 47,492 158 40,373 158 36,460 158 SSG.................................. 75,629 197 62,846 190 56,284 190 SGT.................................. 104,660 184 80,217 191 72,698 191 CPL/SPC.............................. 154,389 158 122,053 158 115,112 158 PFC.................................. 64,751 110 60,059 110 55,704 110 PV2.................................. 31,034 13 34,185 13 31,740 13 PV1.................................. 16,677 3 22,795 3 20,202 3 TOTAL ENLISTED PERSONNEL........... 513,671 891 437,669 891 401,998 891 TOTAL OFF & ENL PERSONNEL............. 610,759 1,524 525,182 1,524 480,297 1,524 CADETS................................. 4,041 0 4,016 0 4,016 0 TOTAL AVERAGE STRENGTH................. 614,800 1,524 529,198 1,524 484,313 1,524

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SECTION 3 ACTIVE DUTY STRENGTHS BY MONTH (IN THOUSANDS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFF ENL CAD TOTAL OFF ENL CAD TOTAL OFF ENL CAD TOTAL SEPTEMBER.......... 78.174 400.089 4.137 482.400 78.649 399.748 4.000 482.397 78.649 399.748 4.000 482.397 OCTOBER............ 80.705 413.786 4.125 498.616 80.547 405.715 4.134 490.396 77.137 402.025 4.108 483.270 NOVEMBER........... 80.566 412.895 4.123 497.584 80.295 407.118 4.129 491.542 76.983 402.972 4.098 484.053 DECEMBER........... 80.585 409.431 4.096 494.112 80.386 404.458 4.100 488.944 76.944 397.982 4.096 479.022 JANUARY............ 80.794 410.146 4.089 495.029 77.331 397.481 4.088 478.900 77.238 400.481 4.088 481.807 FEBRUARY........... 80.580 409.410 4.083 494.073 77.105 397.962 4.067 479.134 76.990 402.024 4.067 483.081 MARCH.............. 80.458 408.512 4.071 493.041 76.980 398.641 4.054 479.675 76.822 401.070 4.054 481.946 APRIL.............. 80.437 405.972 4.063 490.472 76.901 401.097 4.050 482.048 76.701 401.340 4.050 482.091 MAY................ 81.621 404.027 3.064 488.712 78.215 403.452 3.070 484.737 77.936 401.283 3.070 482.289 JUNE............... 82.152 403.548 4.271 489.971 78.929 403.330 4.232 486.491 78.573 399.347 4.232 482.152 JULY............... 81.897 403.943 4.189 490.029 78.820 406.114 4.174 489.108 78.415 401.824 4.174 484.413 AUGUST............. 81.656 405.319 4.173 491.148 78.717 407.522 4.154 490.393 78.245 399.878 4.154 482.277 SEPTEMBER.......... 81.656 406.923 4.149 492.728 78.650 399.750 4.000 482.400 78.800 399.600 4.000 482.400 AVERAGE STRENGTH... 97.088 513.671 4.041 614.800 87.513 437.669 4.016 529.198 78.299 401.998 4.016 484.313 (TTAD MANYRS INCL) 0.177 0.136 0.313 0.241 0.187 0.428 0.240 0.185 0.425 TTAD $M............ 18.872 7.120 25.992 26.702 10.066 36.768 27.526 10.282 37.808 (CONTINGENCY MANYRS INCLUDED)......... 0.542 1.309 1.851 0.498 0.987 1.485 0.499 0.989 1.488 CONTINGENCY $M..... 51.925 84.494 136.419 47.704 63.705 111.409 49.279 65.651 114.930 MOBILIZED MANYRS............. 15.908 105.382 121.290 9.040 35.845 44.885 0.000 0.000 0.000 1/ Includes reimbursable Active Duty Strength 2/ Temporary Tours of Active Duty (TTAD) for less than 180 days is reflected in the average strength row. 3/ FY06 column includes actuals through December 2005. 4/ The FY 2006 column reflects baseline end strength and work years funding with Title IX. The Army began FY 2006 approximately 10,300 over baseline end strength and plans to execute approximately 16,300 over the base force of 482,400 end strength in FY 2006. The Army intends to seek supplemental funds to finance the over strength. 5/ Contingency man-years are for contingencies other than Operation Enduring Freedom (OEF) and Operation Iraqi Freedom (OIF). 6/ GWOT Supplemental Mobilized Man-years in support of OEF/OIF.

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SECTION 3 GAINS AND LOSSES BY SOURCE AND TYPE ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFFICERS BEGINNING STRENGTH................... 80,968 78,500 78,650 GAINS (BY SOURCE) SERVICE ACADEMIES.................. 1,044 1,044 1,044 ROTC............................... 3,617 2,366 2,366 OFFICER CANDIDATE SCHOOL........... 1,496 1,412 1,412 VOLUNTARY ACTIVE DUTY.............. 0 0 0 DIRECT APPOINTMENTS................ 455 930 930 WARRANT OFFICER PROGRAMS........... 1,301 1,329 1,329 OTHER.............................. 496 392 392 TOTAL GAINS........................ 8,409 7,473 7,473 LOSSES (BY TYPE) EXPIRATION OF CONTRACT............. 1,828 1,767 1,767 RETIREMENT 3,246 3,138 3,138 DISABILITY....................... (116) (112) (112) NON-DISABILITY................... (3,130) (3,026) (3,026) 15 YEAR RETIREMENT............... 0 0 0 VOLUNTARY SEPARATION - VSI......... 0 0 0 VOLUNTARY SEPARATION - SSB......... 0 0 0 INVOLUNTARY SEP OF RESERVE......... 0 0 0 INVOLUNTARY SEP OF REGULAR......... 320 309 309 REDUCTION-IN-FORCE................. 0 0 0 ATTRITION.......................... 1,041 1,006 1,006 OTHER.............................. 1,286 1,103 1,103 TOTAL LOSSES....................... 7,721 7,323 7,323 END STRENGTH......................... 81,656 78,650 78,800 LESS: OVERSTRENGTH/STOP-LOSS......... 3,156 0 0

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SECTION 3 GAINS AND LOSSES BY SOURCE AND TYPE ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 ENLISTED BEGINNING STRENGTH................... 414,438 399,900 399,750 GAINS (BY SOURCE) NON-PRIOR SERVICE ENLISTMENTS...... 60,730 65,500 68,657 MALES............................ (50,282) (53,865) (56,985) FEMALES.......................... (10,448) (11,635) (11,672) PRIOR SERVICE ENLISTMENTS.......... 10,670 7,500 6,000 REENLISTMENT (IMM)................. 68,057 64,200 62,445 RESERVE COMPONENTS................. 0 0 0 RETURNED TO MILITARY CONTROL....... 1,869 2,319 2,483 OTHER.............................. 805 0 0 GAIN ADJUSTMENT.................... 0 0 0 TOTAL GAINS........................ 142,131 139,519 139,585 LOSSES (BY TYPE) DRAFTEE AND REGULAR ARMY ESTIMATED TERMINATION OF SERVICE... 32,059 29,794 30,594 NORMAL EARLY RELEASE............... 0 0 0 PROGRAMMED EARLY RELEASE........... 0 0 0 SEPARATIONS -VSI................... 0 0 0 SEPARATION - SSB................... 0 0 0 TO COMMISSIONED OFFICER AND WARRANT OFFICER.............. 0 0 0 REENLISTMENT....................... 68,057 64,200 62,445 RETIREMENT......................... 8,380 7,003 7,103 15 YEAR RETIREMENT................. 0 0 0 DROPPED FROM ROLLS................. 3,508 3,880 4,035 ATTRITION ADVERSE CAUSES........... 14,676 14,787 15,422 OTHER ATTRITION.................... 22,966 20,005 20,136 RESERVE COMPONENTS................. 0 0 0 TOTAL LOSSES....................... 149,646 139,669 139,735 END STRENGTH......................... 406,923 399,750 399,600 LESS: OVERSTRENGTH/STOP-LOSS......... 7,023 0 0 CADETS GAINS ENTERING CADETS.................. 1,256 1,162 1,162 LOSSES ATTRITION........................ 237 1,162 1,162 GRADUATES........................ 1,007 0 0

16

SECTION 3 SUMMARY OF ENTITLEMENTS BY SUBACTIVITY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL 1. BASIC PAY........................... 5,555,906 13,518,820 19,074,726 5,211,608 11,365,369 16,576,977 4,773,474 10,514,144 15,287,618 2A. RETIRED PAY ACCRUAL................ 1,507,308 3,699,723 5,207,031 1,380,698 3,011,773 4,392,471 1,266,221 2,786,578 4,052,799 2B. HEALTH CARE ACCRUAL................ 398,479 2,025,505 2,423,984 0 0 0 0 0 0 3. BASIC ALLOWANCE FOR HOUSING............................. 1,386,650 3,796,680 5,183,330 1,439,430 3,122,568 4,561,998 1,191,126 2,524,779 3,715,905 A. DOMESTIC......................... 1,204,559 3,614,681 4,819,240 1,304,405 2,947,749 4,252,154 1,068,689 2,374,392 3,443,081 1. WITH DEPENDENTS............... 925,278 2,995,849 3,921,127 997,382 2,527,812 3,525,194 841,809 2,027,392 2,869,201 2. WITHOUT DEPENDENTS............ 278,884 567,457 846,341 306,599 405,505 712,104 226,464 334,596 561,060 3. SUBSTANDARD HOUSING........... 0 242 242 0 269 269 0 266 266 4. PARTIAL....................... 397 51,133 51,530 424 14,163 14,587 416 12,138 12,554 B. OVERSEAS......................... 182,091 181,999 364,090 135,025 174,819 309,844 122,437 150,387 272,824 1. WITH DEPENDENTS............... 65,619 43,006 108,625 67,482 86,867 154,349 63,293 77,212 140,505 2. WITHOUT DEPENDENTS............ 116,472 138,993 255,465 67,543 87,952 155,495 59,144 73,175 132,319 4. SUBSISTENCE......................... 212,850 2,978,774 3,191,624 198,952 1,622,673 1,821,625 181,536 1,441,445 1,622,981 A. BASIC ALLOWANCE FOR SUBSISTENCE...................... 212,850 1,280,650 1,493,500 198,952 811,859 1,010,811 181,536 855,617 1,037,153 1. AUTHORIZED TO MESS SEPARATELY.................... 212,850 1,377,701 1,590,551 198,952 991,393 1,190,345 181,536 1,038,292 1,219,828 2. LEAVE RATIONS................. 0 0 0 0 0 0 3. RATIONS-IN-KIND NOT AVAILABLE..................... 21,042 21,042 0 0 0 0 4. AUGMENTATION FOR SEPARATE MEALS................ 0 0 0 0 0 0 5. LESS COLLECTIONS.............. 118,093 118,093 179,534 179,534 182,675 182,675 B. SUBSISTENCE IN KIND.............. 1,697,196 1,697,196 807,621 807,621 582,540 582,540 1. SUBSISTENCE IN MESSES..................... 1,027,728 1,027,728 447,454 447,454 306,160 306,160 2. OPERATIONAL RATIONS........... 627,649 627,649 317,616 317,616 236,783 236,783 3. AUGMENTATION RATIONS/OTHER................. 41,819 41,819 42,551 42,551 39,597 39,597 C. FAMILY SUBSISTENCE SUPPLE ALLOW( FSSA).............. 928 928 3,193 3,193 3,288 3,288

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SECTION 3 SUMMARY OF ENTITLEMENTS BY SUBACTIVITY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL 5. INCENTIVE PAY, HAZARDOUS DUTY, AND AVIATION CAREER................. 97,849 85,847 183,696 108,791 99,252 208,043 99,060 85,392 184,452 A. FLYING DUTY PAY.................. 80,511 29,785 110,296 96,948 8,772 105,720 88,302 7,581 95,883 1. AVIATION CAREER, OFFICERS...................... 68,330 68,330 73,388 73,388 67,010 67,010 2. CREW MEMBERS, ENLISTED...................... 29,069 29,069 7,845 7,845 6,654 6,654 3. NONCREW MEMBERS............... 169 716 885 148 927 1,075 148 927 1,075 4. AVIATION CONTINUATION PAY.............. 12,012 12,012 23,268 23,268 21,000 21,000 5. CREW NON-RATED................ 0 0 144 144 144 144 B. PARACHUTE JUMP PAY............... 11,232 52,489 63,721 10,425 72,346 82,771 10,425 62,228 72,653 C. DEMOLITION PAY................... 407 3,195 3,602 266 10,450 10,716 266 8,939 9,205 D. MILITARY FIREFIGHTERS............ 0 0 599 599 599 599 E. ASSIGNMENT INCENTIVE PAY (KOREA)............ 0 0 6,840 6,840 5,800 5,800 F. OTHER............................ 5,699 378 6,077 1,152 245 1,397 67 245 312 6. SPECIAL PAYS........................ 360,045 1,452,442 1,812,487 252,223 940,898 1,193,121 229,703 601,536 831,239 A. PHYSICIAN MEDICAL................ 195,267 195,267 187,061 187,061 161,603 161,603 B. DENTIST MEDICAL.................. 25,037 25,037 32,964 32,964 28,757 28,757 C. NURSE MEDICAL.................... 3,457 3,457 5,633 5,633 4,903 4,903 D. BOARD CERTIFIED PAY FOR NONPHYSICIAN HEALTH CARE PROVIDER............. 2,864 2,864 1,600 1,600 1,614 1,614 E. DIPLOMATE PAY FOR PSYCHOLOGISTS.................... 174 174 174 174 174 174 F. OPTOMETRIST MEDICAL.............. 150 150 836 836 836 836 G. PHARMACY MEDICAL................. 0 0 1,536 1,536 1,560 1,560 H. VETERINARIAN MEDICAL............. 508 508 1,169 1,169 1,169 1,169 I. SEA AND FOREIGN DUTY............. 31,626 200,800 232,426 9,323 57,778 67,101 8,234 50,083 58,317 1. SEA DUTY...................... 561 657 1,218 674 926 1,600 674 926 1,600 2. HARDSHIP DUTY PAY............. 31,065 200,117 231,182 8,649 52,277 60,926 7,560 44,582 52,142 3. OVERSEAS EXTENSION PAY................. 26 26 4,575 4,575 4,575 4,575 J. FOREIGN LANGUAGE PROFICIENCY PAY.................. 4,244 9,681 13,925 5,263 22,743 28,006 14,636 46,313 60,949 K. DIVING DUTY PAY.................. 153 1,362 1,515 140 866 1,006 140 866 1,006 L. REENLISTMENT BONUS............... 505,592 505,592 419,889 419,889 103,567 103,567 M. SPECIAL DUTY ASSIGN PAY.......... 89,045 89,045 116,266 116,266 99,592 99,592 N. ENLISTMENT BONUS................. 165,886 165,886 237,832 237,832 200,307 200,307 O. EDUCATION BENEFITS............... 46,466 46,466 20,721 20,721 38,601 38,601 P. LOAN REPAYMENT................... 34,280 34,280 49,281 49,281 49,042 49,042 Q. HOSTILE FIRE PAY................. 94,986 399,330 494,316 2,843 15,522 18,365 2,867 13,165 16,032 R. JUDGE ADVOCATE CONTINUATION PAY................. 1,579 1,579 3,681 3,681 3,210 3,210 S. HIGH-DEPLOYMENT PER DIEM ALLOWANCE............... 0 0 0 0 0 0 0 0 0

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SECTION 3 SUMMARY OF ENTITLEMENTS BY SUBACTIVITY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL 7. ALLOWANCE........................... 268,091 1,163,497 1,431,588 161,524 796,330 957,854 145,446 703,574 849,020 A. UNIFORM/CLOTHING ALLOWANCE........................ 5,280 258,153 263,433 5,652 355,152 360,804 5,031 302,822 307,853 1. INITIAL ISSUE................. 5,280 78,563 83,843 3,492 93,824 97,316 3,571 96,607 100,178 A. MILITARY................... 4,914 75,506 80,420 2,749 91,158 93,907 2,797 93,892 96,689 B. CIVILIAN................... 366 3,057 3,423 743 2,666 3,409 774 2,715 3,489 2. ADDITIONAL ALLOWANCE.......... 0 0 2,160 2,160 1,460 1,460 3. BASIC MAINTENANCE............. 64,383 64,383 75,968 75,968 66,260 66,260 4. STANDARD MAINTENANCE.......... 102,052 102,052 155,278 155,278 125,103 125,103 5. SUPPLEMENTARY................. 11,017 11,017 25,479 25,479 9,897 9,897 6. OTHER......................... 2,138 2,138 4,603 4,603 4,955 4,955 B. STATION ALLOWANCE OVERSEAS......................... 185,292 509,544 694,836 116,967 325,404 442,371 112,925 300,586 413,511 1. COST OF LIVING................ 166,393 446,839 613,232 104,165 303,315 407,480 101,085 277,724 378,809 2. TEMPORARY LODGING............. 18,899 62,705 81,604 12,802 22,089 34,891 11,840 22,862 34,702 C. CONUS COLA....................... 11,364 54,479 65,843 7,299 25,230 32,529 6,429 21,372 27,801 D. FAMILY SEPARATION ALLOWANCES....................... 66,097 341,319 407,416 31,558 90,540 122,098 21,013 78,790 99,803 1. PCS - NO GOVERNMENT QUARTERS...................... 3,847 0 3,847 5,110 12,930 18,040 4,678 11,230 15,908 2. PCS - DEPENDENTS NOT AUTHORIZED................ 37,443 46,815 84,258 15,483 43,041 58,524 6,798 37,497 44,295 3. TDY........................... 24,807 294,504 319,311 10,965 34,569 45,534 9,537 30,063 39,600 E. PERSONAL MONEY ALLOWANCE........................ 58 2 60 48 4 52 48 4 52

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SECTION 3 SUMMARY OF ENTITLEMENTS BY SUBACTIVITY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL 8. SEPARATION PAY...................... 44,261 344,921 389,182 70,183 318,515 388,698 69,415 305,407 374,822 A. TERMINAL LEAVE PAY............... 18,192 91,718 109,910 24,696 95,782 120,478 22,238 82,247 104,485 B. DONATIONS........................ 0 0 0 0 0 0 C. SEVERANCE PAY, DISABILITY....................... 8,992 116,919 125,911 6,797 92,937 99,734 6,169 86,442 92,611 D. SEVERANCE PAY, NON-PROMOTION.................... 0 0 0 0 0 0 E. SEVERANCE PAY, INVOL HALF (5%).................. 39 18,016 18,055 80 7,446 7,526 82 10,221 10,303 F. SEVERANCE PAY, INVOL FULL (10%)................. 2,191 14,516 16,707 8,374 15,492 23,866 9,301 17,448 26,749 G. SEVERANCE PAY, VSI............... 14,378 13,152 27,530 25,817 5,703 31,520 21,625 5,760 27,385 H. SEVERANCE PAY, SSB............... 0 0 0 0 0 0 0 0 0 I. SEVERANCE PAY, 15 YR RETIREMENT................. 0 0 0 0 0 0 0 0 0 J. $30,000 LUMP SUM BONUS........... 469 90,600 91,069 4,419 101,155 105,574 10,000 103,289 113,289 9. SPECIAL COMPENSATION FOR COMBAT RELATED DISABLED............. 0 0 0 0 0 0 0 0 0 10. RC RETURNED FOR DISABILITY (HIGH 36MTHS AVG).................. 0 0 0 0 0 0 11. SOCIAL SECURITY TAX PAYMENTS........................... 419,535 1,029,371 1,448,906 395,154 859,400 1,254,554 365,133 804,228 1,169,361 12. PERMANENT CHANGE OF STATION TRAVEL..................... 305,096 719,943 1,025,039 399,051 826,337 1,225,388 354,978 643,820 998,798 13. OTHER MILITARY PERSONNEL COSTS.................... 94,212 582,911 677,123 154,326 264,699 419,025 117,626 170,058 287,684 A. APPREHENSION OF DESERTERS.................... 838 838 1,398 1,398 1,407 1,407 B. INTEREST ON SOLDIERS' DEPOSIT............... 270 9,832 10,102 142 152 294 98 105 203 C. DEATH GRATUITIES................ 79,372 298,850 378,222 28,145 30,793 58,938 1,173 5,588 6,761 D. UNEMPLOYMENT COMPENSATION.................... 201,932 201,932 152,539 152,539 153,072 153,072 E. SURVIVOR BENEFITS............... 5,587 5,587 3,677 3,677 3,378 3,378 F. EDUCATION BENEFITS.............. 2,979 2,979 4,214 4,214 2,184 2,184 G. ADOPTION EXPENSES............... 332 110 442 334 112 446 560 186 746 H. SPECIAL COMPENSATION............ 0 0 0 0 0 0 I. MASS TRANSIT SUBSIDY............ 2,771 2,771 5,542 2,155 2,153 4,308 2,172 2,172 4,344 J. PARTIAL DLA..................... 128 482 610 518 1,950 2,468 523 1,966 2,489 K. SGLI EXTRA HAZARD PAYMENTS................. 11,339 59,530 70,869 3,649 19,159 22,808 0 0 0 L. SGLI TRAUMATIC INJURY PAYMENTS................. 0 0 0 9,248 48,552 57,800 0 0 0 M. JROTC........................... 0 0 28,241 28,241 28,925 28,925 N. ROTC............................ 0 0 81,894 81,894 84,175 84,175

20

SECTION 3 SUMMARY OF ENTITLEMENTS BY SUBACTIVITY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL 14. CADET.............................. 51,510 51,510 53,392 53,392 55,818 55,818 SUBTOTAL, ALL MILITARY PERSONNEL APPROPRIATION REQUEST............................. 10,701,792 31,398,434 42,100,226 9,825,332 23,227,814 33,053,146 8,849,536 20,580,961 29,430,497 15. LESS REIMBURSABLES................. 110,496 150,075 260,571 182,136 116,038 298,174 199,575 119,019 318,594 A. RETIRED PAY ACCRUAL............. 6,276 9,313 15,589 32,584 14,933 47,517 35,740 15,098 50,838 B. OTHER........................... 104,220 140,762 244,982 149,552 101,105 250,657 163,835 103,921 267,756 TOTAL, ALL MILITARY PERSONNEL APPROPRIATION REQUEST............................. 10,591,296 31,248,359 41,839,655 9,643,196 23,111,776 32,754,972 8,649,961 20,461,942 29,111,903

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SECTION 3 ANALYSIS OF APPROPRIATION CHANGES AND SUPPLEMENTAL REQUIREMENTS (AMOUNTS IN THOUSANDS OF DOLLARS) FY 2006 FY 2006 INTERNAL PROPOSED PB07 PRESIDENTS CONGRESSIONAL AVAILABLE REALIGNMENT/ DD 1415 FY 2006 BUDGET ACTION TITLE IX HURRICANE APPROPRIATION REPROGRAMMING SUBTOTAL ACTIONS REVISED PAY AND ALLOWANCES OF OFFICERS BASIC PAY....................... 4,497,305 (78,399) 673,780 0 5,092,686 0 5,092,686 0 5,092,686 RETIRED PAY ACCRUAL............. 1,190,716 (20,725) 178,123 0 1,348,114 0 1,348,114 0 1,348,114 HEALTH CARE ACCRUAL............. 0 0 0 0 0 0 0 0 0 INCENTIVE PAY................... 98,295 (1,382) 11,875 0 108,788 0 108,788 0 108,788 SPECIAL PAY..................... 220,791 (4,145) 35,625 0 252,271 0 252,271 0 252,271 BASIC ALLOWANCE FOR HOUSING..... 1,251,691 (22,108) 189,998 0 1,419,581 0 1,419,581 0 1,419,581 BASIC ALLOWANCE FOR SUBSISTENCE 176,284 (2,764) 23,750 0 197,270 0 197,270 0 197,270 STATION ALLOWANCES OVERSEAS..... 106,475 (1,382) 11,875 0 116,968 0 116,968 0 116,968 CONUS COLA...................... 6,461 (111) 949 0 7,299 0 7,299 0 7,299 UNIFORM ALLOWANCES.............. 5,023 (83) 712 0 5,652 0 5,652 0 5,652 FAMILY SEPARATION ALLOWANCES.... 27,885 (483) 4,156 0 31,558 0 31,558 0 31,558 SEPARATION PAYMENTS............. 62,101 (1,063) 9,144 0 70,182 0 70,182 0 70,182 SOCIAL SECURITY TAX - EMPLOYER CONTRIBUTION......... 344,086 (5,527) 47,499 0 386,058 0 386,058 0 386,058 SUPPLEMENTAL FUNDING............ 0 0 0 0 0 0 0 0 0 REIMBURSABLES................... 182,136 0 0 0 182,136 0 182,136 0 182,136 TOTAL OBLIGATIONS............... 8,169,249 (138,172) 1,187,486 0 9,218,563 0 9,218,563 0 9,218,563 LESS REIMBURSABLES.............. 182,136 0 0 0 182,136 0 182,136 0 182,136 TOTAL OFFICER DIRECT OBLIGATIONS.. 7,987,113 (138,172) 1,187,486 0 9,036,427 0 9,036,427 0 9,036,427

22

SECTION 3 ANALYSIS OF APPROPRIATION CHANGES AND SUPPLEMENTAL REQUIREMENTS (AMOUNTS IN THOUSANDS OF DOLLARS) FY 2006 FY 2006 INTERNAL PROPOSED PB07 PRESIDENTS CONGRESSIONAL AVAILABLE REALIGNMENT/ DD 1415 FY 2006 BUDGET ACTION TITLE IX HURRICANE APPROPRIATION REPROGRAMMING SUBTOTAL ACTIONS REVISED PAY AND ALLOWANCES OF ENLISTED BASIC PAY....................... 9,980,814 (172,661) 1,502,726 0 11,310,879 0 11,310,879 0 11,310,879 RETIRED PAY ACCRUAL............. 2,644,425 (45,746) 398,160 0 2,996,839 0 2,996,839 0 2,996,839 HEALTH CARE ACCRUAL............. 0 0 0 0 0 0 0 0 0 INCENTIVE PAY................... 85,802 (1,128) 14,578 0 99,252 0 99,252 0 99,252 SPECIAL PAY..................... 87,277 (779) 10,415 0 96,913 0 96,913 0 96,913 SPECIAL DUTY ASSIGNMENT PAY..... 100,078 (1,731) 17,920 0 116,267 0 116,267 0 116,267 REENLISTMENT BONUS.............. 102,666 (1,777) 319,000 0 419,889 0 419,889 0 419,889 ENLISTMENT BONUS................ 135,171 (2,339) 105,000 0 237,832 0 237,832 0 237,832 EDUCATIONAL BENEFITS............ 17,836 (309) 3,193 0 20,720 0 20,720 0 20,720 LOAN REPAYMENT PROGRAM.......... 50,145 (864) 0 0 49,281 0 49,281 0 49,281 BASIC ALLOWANCE FOR HOUSING..... 2,668,230 (47,266) 495,992 0 3,116,956 0 3,116,956 0 3,116,956 STATION ALLOWANCES OVERSEAS..... 283,561 (4,906) 46,749 0 325,404 0 325,404 0 325,404 CONUS COLA...................... 21,717 (376) 3,889 0 25,230 0 25,230 0 25,230 CLOTHING ALLOWANCES............. 305,712 (5,375) 54,647 0 354,984 0 354,984 0 354,984 FAMILY SEPARATION ALLOWANCES.... 77,931 (1,347) 13,955 0 90,539 0 90,539 0 90,539 SEPARATION PAYMENTS............. 294,474 (4,991) 29,042 0 318,525 0 318,525 0 318,525 RC RETURNED FOR DISABILITY (HIGH 36MTHS AVG)............... 0 0 0 0 0 0 0 0 0 SOCIAL SECURITY TAX - EMPLOYER CONTRIBUTION......... 754,841 (13,058) 113,410 0 855,193 0 855,193 0 855,193 SUPPLEMENTAL FUNDING............ 0 0 0 0 0 0 0 0 0 REIMBURSABLES................... 79,402 0 0 0 79,402 0 79,402 0 79,402 TOTAL OBLIGATIONS............... 17,690,082 (304,653) 3,128,676 0 20,514,105 0 20,514,105 0 20,514,105 LESS REIMBURSABLES.............. 79,402 0 0 0 79,402 0 79,402 0 79,402 TOTAL ENLISTED DIRECT OBLIGATIONS 17,610,680 (304,653) 3,128,676 0 20,434,703 0 20,434,703 0 20,434,703 PAY AND ALLOWANCES OF CADETS TOTAL OBLIGATIONS............... 54,331 (939) 0 0 53,392 0 53,392 0 53,392 TOTAL CADET DIRECT OBLIGATIONS.... 54,331 (939) 0 0 53,392 0 53,392 0 53,392

23

SECTION 3 ANALYSIS OF APPROPRIATION CHANGES AND SUPPLEMENTAL REQUIREMENTS (AMOUNTS IN THOUSANDS OF DOLLARS) FY 2006 FY 2006 INTERNAL PROPOSED PB07 PRESIDENTS CONGRESSIONAL AVAILABLE REALIGNMENT/ DD 1415 FY 2006 BUDGET ACTION TITLE IX HURRICANE APPROPRIATION REPROGRAMMING SUBTOTAL ACTIONS REVISED SUBSISTENCE OF ENLISTED PERSONNEL BASIC ALLOWANCE FOR SUBSISTENCE 827,257 (15,398) 0 0 811,859 0 811,859 0 811,859 SUBSISTENCE-IN-KIND 527,137 (8,037) 254,058 0 773,158 0 773,158 0 773,158 FAMILY SUBSISTENCE SUPPLEMENTAL ALLOWANCE 3,244 (51) 0 0 3,193 0 3,193 0 3,193 SUPPLEMENTAL FUNDING 0 0 0 0 0 0 0 0 0 REIMBURSABLES 34,463 0 0 0 34,463 0 34,463 0 34,463 TOTAL OBLIGATIONS............... 1,392,101 (23,486) 254,058 0 1,622,673 0 1,622,673 0 1,622,673 LESS REIMBURSABLES.............. 34,463 0 0 0 34,463 0 34,463 0 34,463 TOTAL ENL SUBSISTENCE DIRECT OBLIGATIONS.............. 1,357,638 (23,486) 254,058 0 1,588,210 0 1,588,210 0 1,588,210 PERMANENT CHANGE OF STATION ACCESSION TRAVEL................ 209,851 (3,189) 2,093 0 208,755 0 208,755 0 208,755 TRAINING TRAVEL................. 54,855 (1,153) 2,904 0 56,606 0 56,606 0 56,606 OPERATIONAL TRAVEL.............. 198,988 (3,844) 67,778 25,353 288,275 0 288,275 0 288,275 ROTATIONAL TRAVEL............... 408,616 (8,194) 29,096 0 429,518 0 429,518 0 429,518 SEPARATION TRAVEL............... 173,045 (2,509) 0 0 170,536 0 170,536 0 170,536 ORGANIZED UNIT TRAVEL........... 3,561 (294) 6,339 0 9,606 0 9,606 0 9,606 NON-TEMPORARY STORAGE........... 34,883 0 0 0 34,883 0 34,883 0 34,883 TEMPORARY LODGING EXPENSE....... 25,036 0 0 0 25,036 0 25,036 0 25,036 SUPPLEMENTAL FUNDING............ 0 0 0 0 0 0 0 0 0 REIMBURSABLES................... 2,173 0 0 0 2,173 0 2,173 0 2,173 TOTAL OBLIGATIONS............... 1,111,008 (19,183) 108,210 25,353 1,225,388 0 1,225,388 0 1,225,388 LESS REIMBURSABLES.............. 2,173 0 0 0 2,173 0 2,173 0 2,173 TOTAL PCS DIRECT OBLIGATIONS...... 1,108,835 (19,183) 108,210 25,353 1,223,215 0 1,223,215 0 1,223,215

24

SECTION 3 ANALYSIS OF APPROPRIATION CHANGES AND SUPPLEMENTAL REQUIREMENTS (AMOUNTS IN THOUSANDS OF DOLLARS) FY 2006 FY 2006 INTERNAL PROPOSED PB07 PRESIDENTS CONGRESSIONAL AVAILABLE REALIGNMENT/ DD 1415 FY 2006 BUDGET ACTION TITLE IX HURRICANE APPROPRIATION REPROGRAMMING SUBTOTAL ACTIONS REVISED OTHER MILITARY PERSONNEL COSTS APPREHENSION OF MILITARY DESERTERS ABSENTEES AND ESCAPED MILITARY PRISONERS..................... 1,416 (18) 0 0 1,398 0 1,398 0 1,398 DEATH GRATUITIES/TSGLI.......... 7,080 (1,431) 111,089 0 116,738 0 116,738 0 116,738 UNEMPLOYMENT BENEFITS PAID TO EX-SERVICE MEMBERS............ 146,550 (1,834) 7,823 0 152,539 0 152,539 0 152,539 SURVIVOR BENEFITS............... 3,724 (47) 0 0 3,677 0 3,677 0 3,677 ADOPTION COSTS.................. 452 (6) 0 0 446 0 446 0 446 EDUCATIONAL BENEFITS............ 4,268 (54) 0 0 4,214 0 4,214 0 4,214 SOLDIER INTEREST ON DEPOSIT..... 203 (4) 95 0 294 0 294 0 294 SPECIAL COMPENSATION............ 0 0 0 0 0 0 0 0 0 MASS TRANSIT.................... 4,364 (56) 0 0 4,308 0 4,308 0 4,308 PARTIAL DLA..................... 2,500 (32) 0 0 2,468 0 2,468 0 2,468 ROTC............................ 82,933 (1,039) 0 0 81,894 0 81,894 0 81,894 JROTC........................... 28,600 (359) 0 0 28,241 0 28,241 0 28,241 OTHER........................... 0 0 22,808 0 22,808 0 22,808 0 22,808 SUPPLEMENTAL FUNDING............ 0 0 0 0 0 0 0 0 0 REIMBURSABLES................... 0 0 0 0 0 0 0 0 0 TOTAL OBLIGATIONS............... 282,090 (4,880) 141,815 0 419,025 0 419,025 0 419,025 LESS REIMBURSABLES.............. 0 0 0 0 0 0 0 0 0 TOTAL OMPC DIRECT OBLIGATIONS..... 282,090 (4,880) 141,815 0 419,025 0 419,025 0 419,025 TOTAL DIRECT OBLIGATIONS.......... 28,400,687 (491,313) 4,820,245 25,353 32,754,972 0 32,754,972 0 32,754,972

25

Section 3 Schedule of Increases and Decreases (Amounts in thousands of dollars)

26

BA1 BA2 BA3 BA4 BA5 BA6FY 2006 Direct Program 9,036,427 20,434,703 53,392 1,588,210 1,223,215 419,025 Increases: Pricing Increases: Annualization of FY 2006 Pay Raise (3.1%) effective 1 Jan 2006 51,143 110,827 90 FY 2007 Pay Raise (2.2% with additional increases for warrant officers and mid-grade senior enlisted personnel) effective 1 Jan 2007 121,252 262,008 980 Annualization of FY 2006 Pay Raise (3.1%) for Dislocation Allowance effective 1 Jan 2006 264 FY 2007 Pay Raise for Dislocation Allowance (2.2% with additional increases for warrant officers and mid-grade senior enlisted personnel) effective 1 Jan 2007 680 Inflation Rate (2.2%) Cadet Subsistence rate change $6.50 to $6.60 effective 1 Jan 2007 242 Basic Allowance for Subsistence rate change (1.9%) 19,358 Subsistence in Kind rates increase 11,618 Family Subsistence Supplemental Allowance rate increase 46 Enlisted Clothing Allowance rate change 6,004 Annualization for FY 2006 Basic Allowance for Housing Rates (6%) effective 1Jan 2006 15,317 31,986 FY 2007 Basic Allowance for Housing Rates (6%) effective 1Jan 2007 48,913 101,746 Cost of Living CONUS rate 103 . Overseas Station Allowance for Temporary Lodging 193 Increase in Foreign Currency rates for Basic Allowance for Housing overseas 22,196 Other Pricing Increases Educational Benefits rates increase 21,125 Loan Repayment rate change 4,687 Separation Pay rate change 4,643 Family Separation Allowance rate change 431 Household Goods Land/Sea rates increase 8,231 POV Port/Sealift rates increase 1,212 Temporary Lodging Expense rate increase 1,843 Member travel rate increase 14,117 Non-Temporary Storage rate increase 642 Death Gratuities rate increase 200 Partial Dislocation Allowance rate increase 82 Total Pricing Increases 259,117 543,457 1,312 31,022 26,989 282 Program Increases Strength Related: Man-year/Grade Structure Changes 1,185 192 830 New or Projected Increases to Programs/Compensation Separation Pay increase in number of payments 6,253 6,025 Special Pay for Foreign Language Proficiency increase in payments 9,373 23,570 G. I. Bill offset change 439 Enlistment Bonus Program increase in the number of takers and amount offered 4,818 Military Clothing initial issue 1,072 Overseas Station Allowance increase in number receiving 378 Cadet Subsistence Allowance increase to support increase in the number of cadets 284

BA1 BA2 BA3 BA4 BA5 BA6 Basic Allowance for Subsistence increase in number of soldiers receiving 22,468 POV Port/Sealift increase in the number of personnel receiving the allowance 17,091 Unemployment Benefits increase in the number of payments 9,235 Mass Transit Subsidy increase in number receiving 35 Adoption Expense increase in number receiving 298 New Mission - ROTC added to active component 2,281 New Mission - JROTC added to active component 684 Total Program Increases 16,811 46,004 1,114 22,468 17,091 12,533 Total Increases 275,928 589,461 2,426 53,490 44,080 12,815 Decreases: Pricing Decreases Other Pricing Decreases Overseas Station Allowance rate change -726 Selective Reenlistment Bonus rate change -234 Basic Pay (Longevity) -15,780 -163,811 Retired Pay Accrual (Longevity) -4,186 -43,415 Federal Insurance Contribution Act (FICA) (Longevity) -1,158 -12,532 Unemployment Compensation rate -8,702 Total Pricing Decreases -21,124 -220,718 0 0 0 -8,702 Program Decreases Strength Related: Man-year and Grade Structure changes -850,317 -1,280,977 Basic Allowance for Housing decrease in the number paid -211,985 -731,518 Family Separation Allowance decrease in payments -10,726 -12,181 Separation Pay decrease in payments -8,014 -23,777 CONUS Cost of Living decrease in payments -973 -3,858 Basic Allowance for Subsistence decrease in number receiving -20,801 0 Overseas Station Allowance decrease in number receiving -7,177 -25,592 Clothing Allowance decrease in number receiving -636 -59,140 Special Pay decrease in number receiving -31,893 -13,518 Incentive Pay decrease in number receiving -9,731 -13,860 Increase in reimbursable reduces direct program -17,439 -1,590 -1,345 -46 Special Duty Assignment Pay decrease in number receiving -16,675 Loan Repayment Program decrease in participants -4,926 Enlistment Bonus decrease in number receiving -42,343 Education Benefits decrease in the number of personnel receiving -3,247 -2,030 Selective Reenlistment Bonus decrease in the number personnel receiving -316,088 Enlisted Basic Allowance for Subsistence decrease in number receiving -234,718 Member Travel decrease in the number receiving -105,868 Dependent Travel decrease in the number receiving -63,331 Dislocation Allowance decrease in number receiving -47,406 HHG Land/Seas decrease in the number of shipments -49,647 Temporary Lodging Expense Allowance decrease in the number receiving -4,418 Interest on Soldiers Deposits decrease in number receiving -91 Death Gratuities Incremental costs associated with GWOT not included in the base budget -52,366 SGLI Traumatic Injury payments costs associated with GWOT not included in the base budget -57,800

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BA1 BA2 BA3 BA4 BA5 BA6 Survivor Benefits decrease in the number of personnel receiving -299 Partial Dislocation Allowance decrease in the number of personnel receiving -60 SGLI Extra Hazards payments. Costs not included in the base budget. -22,808 Total Program Decreases -1,169,692 -2,558,800 0 -236,063 -270,716 -135,454 Total Decreases -1,190,816 -2,779,518 0 -236,063 -270,716 -144,156 FY 2007 Direct Program 8,121,539 18,244,646 55,818 1,405,637 996,579 287,684

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Schedule of Increases and Decreases (Amounts in thousands of dollars) Pay and Allowance of Officers FY 2006 Direct Program $ 9,036,427 Increases: Pricing Increases: a. Annualization of FY 2006 3.1% pay raise effective 51,143 1 Jan 2006. b. FY 2007 2.2% pay raise effective 1 Jan 2007. 121,252 c. Basic Allowance for Housing (BAH) rates (housing 15,317 cost growth) - Annualization of FY 2006 6.0% cost growth effective 1 Jan 2006. d. BAH rates (housing cost growth) - FY 2007 6.0% 48,913 inflation effective 1 Jan 2007. e. Increase in rates for CONUS Cost of Living. 103 f. Increase in rates for Overseas Station Allowance 193 for Temporary Lodging. g. Increase in foreign currency rates for BAH Overseas. 22,196 Total Pricing Increases 259,117 Program Increases: a. Strength Related - Grade Structure Changes. 1,185 b. Increase in Separation (30K Lump Sum & Involuntary 6,253 Full Pay) payments. c. Increase in special pay payments for Foreign 9,373 Language Proficiency Pay. Total Program Increases 16,811 Total Increases $ 275,928 Decreases: Pricing Decreases: a. Basic Pay (Longevity). (15,780) b. Retired Pay Accrual (longevity) (4,186) c. Federal Insurance Contribution Act (FICA) longevity (1,158) Total Pricing Decreases (21,124) Program Decreases: a. Strength Related - Man-year and Grade Structure changes (850,317) b. Decrease in Basic Allowance for Housing - decrease (211,985) in number paid. c. Decrease in Family Separation Allowances - (10,726) (decrease in number paid). d. Decrease in Separation pay (Disability, Voluntary (8,014) Incentive & Lump Sum Terminal Leave) payments. e. Decrease in CONUS Cost of Living Allowance (973) (decrease in number paid). f. Decrease in Basic Assistance for Subsistence (20,801) (decrease in number paid). g. Decrease in Overseas Stations Allowance (decrease (7,177) in number paid). h. Decrease in Uniform Clothing (decrease in number paid). (636) i. Decrease in Special Pay (decrease in number paid). (31,893) j. Decrease in Incentive Pay (decrease in number paid) (9,731) k. Increase in reimbursable reduces direct program. (17,439) Total Program Decreases (1,169,692) Total Decreases $ (1,190,816) FY 2007 Direct Program $ 8,121,539

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(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 4,773,474 ESTIMATE FY 2006 $ 5,211,608 ACTUAL FY 2005 $ 5,555,906

Project: Basic Pay - Officers

Part I - Purpose and Scope The funds requested will provide for the basic compensation and length of service pay increments of officers on active duty under provisions of 37 U.S.C. 201, 203, 204, 205, and 1009. Funds also provide for the compensation of officers of the reserve components who have entered active duty as members of the active component of the Army.

Part II - Justification of Funds Required The basic compensation is determined by multiplying the projected average number of personnel by grade by the estimated average annual compensation, including length of service increments, for each grade. The FY 2007 military pay raise reflects a 2.2% across-the-board pay raise effective 1 January 2007 with selective increases for certain warrant officers effective 1 April 2007. The net change in the basic pay requirement is -$438.1 million between FY 2006 and FY 2007. The decrease is primarily due to the $673.8 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.

(1) Annualization of the 1 Jan 2006, 3.1 percent pay raise: +$37.1 million. (2) The 1 Jan 2007, 2.2 percent pay raise: +$88.8 million. (3) Decrease in total officer man-years of -9,214: -$548.8 million. (4) Grade structure changes: +$0.6 million. (5) Change in basic pay rates (longevity): -$15.8 million.

Detailed cost computations are provided by the following table:

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OFFICER BASIC PAY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT GENERAL................... 11 $ 148,298 $ 1,631 10 $ 151,522 $ 1,515 10 $ 153,651 $ 1,537 LIEUTENANT GENERAL........ 41 144,557 5,927 43 151,128 6,499 43 156,807 6,743 MAJOR GENERAL............. 117 130,978 15,324 103 135,175 13,923 103 138,456 14,261 BRIGADIER GENERAL......... 181 116,079 21,010 157 119,573 18,773 157 122,245 19,192 COLONEL................... 4,421 98,503 435,482 4,074 102,999 419,618 3,593 105,657 379,626 LIEUTENANT COLONEL........ 11,520 79,773 918,985 10,044 83,697 840,653 8,894 86,149 766,209 MAJOR..................... 18,255 67,729 1,236,393 15,937 70,545 1,124,276 14,297 72,084 1,030,585 CAPTAIN................... 28,009 53,441 1,496,829 27,172 55,283 1,502,150 24,492 56,104 1,374,099 1ST LIEUTENANT............ 11,995 40,860 490,116 9,368 42,197 395,301 8,188 42,752 350,053 2ND LIEUTENANT............ 8,410 30,510 256,589 7,216 32,029 231,121 6,400 32,985 211,104 SUBTOTAL............... 82,960 $ 4,878,286 74,124 $ 4,553,829 66,177 $ 4,153,409 WARRANT OFFICER (W-5)..... 486 $ 71,959 $ 34,972 458 $ 74,770 $ 34,245 414 $ 77,795 $ 32,207 WARRANT OFFICER (W-4)..... 2,117 62,472 132,253 1,786 65,123 116,310 1,619 67,336 109,017 WARRANT OFFICER (W-3)..... 3,927 52,128 204,707 3,368 54,430 183,320 3,013 56,907 171,461 WARRANT OFFICER (W-2)..... 5,361 42,010 225,216 5,359 43,480 233,009 4,875 45,289 220,784 WARRANT OFFICER (W-1)..... 2,237 35,973 80,472 2,418 37,591 90,895 2,201 39,344 86,596 SUBTOTAL............... 14,128 $ 677,620 13,389 $ 657,779 12,122 $ 620,065 TOTAL OFFICER BASIC PAY... 97,088 $ 5,555,906 87,513 $ 5,211,608 78,299 $ 4,773,474

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Project: Retired Pay Accrual - Officers

Part I - Purpose and Scope The funds requested provide for the Department of Defense's contribution to its Military Retirement Fund, in accordance with 10 U.S.C 1466. Part II - Justification of Funds Requested

The budget estimates are derived as a product of:

(a) The DOD Actuary approved full-time Normal Cost Percentage (NCP) of basic pay is 26.5 percent for FY 2007.

(b) The total amount of the basic pay expected to be paid during the fiscal year to members of the Active Army.

The FY 2007 military pay raise reflects a 2.2% across-the-board pay raise effective 1 January 2007 with selective increases for certain warrant officers effective 1 April 2007. The net change in the retired pay accrual requirement is -$114.5 million between FY 2006 and FY 2007. The decrease is primarily due to the $178.1 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.

(1) Annualization of the 1 Jan 2006, 3.1 percent pay raise: +$9.8 million. (2) The 1 Jan 2007, 2.2 percent pay raise: +$23.6 million. (3) Decrease in officer man-years: -$143.9 million. (4) Grade structure changes: +$0.2 million. (5) Change in basic pay rates (longevity): -$4.2 million.

Detailed cost computations are provided in the following table:

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OFFICER RETIRED PAY ACCRUAL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT RPA............ 97,088 $ 15,525.17 $ 1,507,308 87,513 $ 15,777.06 $ 1,380,698 78,299 $ 16,171.61 $ 1,266,221

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(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 0 ESTIMATE FY 2006 $ 0 ACTUAL FY 2005 $ 398,479

Project: Health Care Accrual - Officers

Part I - Purpose and Scope The funds will be used to pay the health care accrual amount into the Department of Defense Medicare-eligible Retiree Health Care Fund for the future Medicare eligible health care costs for current military personnel.

Part II - Justification of Funds Requested

The budgetary estimates are derived as a product of the approved actuarial rate and the average strength.

The health care accrual funding was transferred to Medicare-Eligible Retiree Health Fund Contribution, Army Account beginning in FY 2006 by The Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (P.L. 108-375). Detailed cost computations are provided by the following table:

34

OFFICER HEALTH CARE ACCRUAL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AMOUNT AMOUNT AMOUNT HEALTH CARE ACCRUAL...................... $ 398,479 $ 0 $ 0

35

(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 99,060 ESTIMATE FY 2006 $ 108,791 ESTIMATE FY 2005 $ 97,849

Project: Incentive Pay for Hazardous Duty - Officers Part I - Purpose and Scope The funds requested will provide pay to officers under provisions of 37 U.S.C. 301 for these types of duty: Flight Aviation Service (Rated Officers) - includes rated aviators, who are entitled to continuous aviation career incentive pay, regardless of current duty assignment, as prescribed by the Aviation Career Incentive Act of 1974. In addition, aviators who are assigned to operational flying positions and flight surgeons, both of whom are required to fly at least four hours of aerial flight each month, are eligible. Aviation Continuation Pay - executes a written agreement to remain on active duty in aviation service for at least one year. Flight Crew Member/Non-crew member (Non-rated Officers) - assigned to a position that requires at least four hours of aerial flight each month. Non-crew members perform duties directly related to the in-flight mission of the aircraft, e.g., ground liaison officers, aviation maintenance technicians, or aero medical physician’s assistants. The duties performed by crew members are essential to the mission of the aircraft, e.g., aerial observers and airborne electrical equipment sensor operators. Parachute - assigned to a permanent parachute position or airborne unit which requires parachute jumping as an essential part of military duty, or while undergoing airborne-type training, or performing short-term parachute duty. Continuous payment of hazardous duty pay for parachute duty requires at least one parachute jump every three months. Pay for the short-term parachute duty is prorated based on the duration of the period for which parachute jumping is required. High Altitude Low Opening Jump Pay - assigned to a permanent military free-fall position which requires parachute jumping from at least 2,500 feet with a planned delay between exit and opening as an essential part of military duties, or while undergoing military free-fall type training at the US Army Military Free-fall Course at the US Army John F. Kennedy Special Warfare School. Soldiers must be graduates of military free-fall course or undergoing training for such designation. They must also be required by orders to engage in military free-fall jumps from an aircraft in flight and perform the specified minimum jumps to be entitled to pay. Proficiency requirements will remain the same as static line requirements. Demolition of Explosives - assigned to a position, which requires the member, as his primary duty, to demolish by the use of explosives, objects, obstacles, or explosives; or recover and render harmless, by disarming or demolition, explosives, which failed to function as, intended

36

or which become a potential hazard. Demolition pay is limited to those serving in Specialty 91E (Explosive Ordnance Disposal Officer). Toxic Pesticides Exposure – for duty performed while assigned to entomology, pest control, pest management, or preventive medicine functions for a period of 30 consecutive days or more; that requires a member to perform any calendar month a fumigation task utilizing phosphine, sulfuryl fluoride, hydrogen cyanide, methyl bromide, or a fumigant of comparable high acute toxicity and hazard potential. Experimental Stress - serving as a human test subject in thermal stress experiments at Natick Laboratories, Natick, MA. The tests conducted include development of equipment (mostly clothing) and physiological testing. Also low pressure, high altitude chamber training is conducted at the US Army Aero medical Center; Fort Rucker, AL. and the Armed Forces Institute of Pathology; Washington, DC. Chemical Munitions - this is a peacetime hazardous incentive pay for members of the uniformed services whose primary duties require the routine physical handling of chemical munitions or chemical surety material. Routine physical handling must be incident to manufacturing, maintenance, storage, testing, laboratory analysis, transportation, surveillance, assembly, disassembly, demilitarization, or disposal of chemical munitions or chemical surety material. This incentive pay is not authorized for individuals who handle the individual components of binary munitions, dilute solutions of toxic chemicals, riot control agents, chemical defoliants, herbicides, smoke, flame and incendiaries, or industrial chemicals. Part II - Justification of Funds Requested The projected average number of payments is based on the total spaces where each type of pay is authorized to meet force structure requirements. The compensation for aviation service (rated officers) is obtained by multiplying the projected average number of personnel authorized for this type of pay by rates established in 37 U.S.C. 301a for years of aviation service or years of officer service to include a specified number of years in jobs which justify flying. The compensation for all other types of incentive pay is arrived at by multiplying the projected number of each type by the statutory rate. The net change in incentive pays for the number of officers receiving aviation career incentive pay requirement is -$9.7 million between FY 2006 and FY 2007. The decrease is primarily due to the $11.9 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.


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OFFICER INCENTIVE PAY FOR HAZARDOUS DUTY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT INCENTIVE PAY FLYING DUTY COMMISSIONED OFFICERS CATEGORY Crew 125............................. 420 $ 1,500 $ 630 420 $ 1,500 $ 630 420 $ 1,500 $ 630 Crew 156............................. 291 1,874 545 203 1,874 380 272 1,874 510 Crew 188............................. 286 2,256 645 248 2,256 559 270 2,256 609 Crew 206............................. 573 2,473 1,417 529 2,473 1,308 544 2,473 1,345 Crew 250............................. 41 3,000 123 22 3,000 66 41 3,000 123 Crew 385............................. 17 4,620 79 15 4,620 69 17 4,620 79 Crew 495............................. 75 5,940 446 73 5,940 434 75 5,940 446 Crew 585............................. 93 7,020 653 96 7,020 674 93 7,020 653 Crew 650............................. 1,623 7,800 12,659 1,791 7,800 13,970 1,594 7,800 12,433 Crew 840............................. 1,485 10,080 14,969 1,622 10,080 16,350 1,464 10,080 14,757 SUBTOTAL........................... 4,904 $ 32,166 5,019 $ 34,440 4,790 $ 31,585 WARRANT OFFICERS CATEGORY Crew 125............................. 1,119 1,500 1,679 1,561 1,500 2,342 1,116 1,500 1,674 Crew 156............................. 588 1,872 1,101 409 1,872 766 548 1,872 1,026 Crew 188............................. 559 2,256 1,261 482 2,256 1,087 529 2,256 1,193 Crew 206............................. 1,136 2,472 2,808 1,047 2,472 2,588 1,078 2,472 2,665 Crew 650............................. 1,666 7,800 12,995 1,839 7,800 14,344 1,637 7,800 12,769 Crew 840............................. 1,619 10,080 16,320 1,768 10,080 17,821 1,597 10,080 16,098 SUBTOTAL........................... 6,687 $ 36,164 7,106 $ 38,948 6,505 $ 35,425 TOTAL FLYING DUTY CREW................. 11,591 $ 68,330 12,125 $ 73,388 11,295 $ 67,010 FLYING DUTY NON-CREW MEMBERS........... 94 1,800 169 82 1,800 148 82 1,800 148 AVIATION CONTINUATION PAY.............. 1,001 12,000 12,012 1,939 12,000 23,268 1,750 12,000 21,000 CREW-NONRATED.......................... 0 2,775 0 52 2,775 144 52 2,775 144 TOTAL FLYING DUTY PAY.................. 12,686 $ 80,511 14,198 $ 96,948 13,179 $ 88,302 OTHER HAZARDOUS DUTY EXPERIMENTAL STRESS 7 1,800 13 20 1,800 36 20 1,800 36 TOXIC PESTICIDES EXPOSURE 1 1,800 2 2 1,800 4 2 1,800 4 CHEMICAL MUNITIONS 3,158 1,800 5,684 618 1,800 1,112 15 1,800 27 OTHER 3,166 $ 5,699 640 $ 1,152 37 $ 67 PARACHUTE JUMP (REGULAR) 5,934 1,800 10,681 5,592 1,800 10,066 5,592 1,800 10,066 PARACHUTE JUMP (HALO) 204 2,700 551 133 2,700 359 133 2,700 359 PARACHUTE JUMP 6,138 $ 11,232 5,725 $ 10,425 5,725 $ 10,425 DEMOLITION OF EXPLOSIVES 226 1,800 407 148 1,800 266 148 1,800 266 TOTAL 9,530 $ 17,338 6,513 $ 11,843 5,910 $ 10,758 TOTAL OFFICER INCENTIVE PAY FOR HAZARDOUS DUTY................... 22,216 $ 97,849 20,711 $ 108,791 19,089 $ 99,060

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(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 229,751 ESTIMATE FY 2006 $ 252,271 ACTUAL FY 2005 $ 360,103

Project: Special Pay - Officers

Part I - Purpose and Scope

The Army continues to attract highly qualified and motivated young people to serve. To maintain the quality force that we have, we must retain good Soldiers. We are proud of the men and women who come into the Armed Forces to make a difference, to be part of something larger than them and to give something back to their country. The Army continues to adjust policies and incentives to access new Soldiers, to reenlist current Soldiers and to reduce unit attrition rates. This ensures that our Army is manned with top-quality people, and capitalizes on investments in training, education and mentoring.

Funds requested in this account are authorized to provide monetary incentives for the procurement and retention of officers assigned as physicians, dentists, nurses, psychologists, non-physician health care providers, veterinarians, optometrists, divers, and linguists. Additionally, this account includes special pays authorized to general officers to partially offset extraordinary expenses incurred in the performance of their official duties. Finally, this account covers special pays authorized for officers, who are assigned sea duty and those who are on duty subject to hostile fire or imminent danger.

Special Pay for Physicians - these payments is authorized by 37 U.S.C. 302, as amended. They are intended to provide a monetary incentive for the procurement and retention of medical officers. A physician may qualify for the following pays: (1) Variable Special Pay - paid monthly as an automatic entitlement to all medical corps officers on active duty. The annual rate of pay is based upon the number of years of creditable service for special pay. The annual amounts range from $1,200 to $12,000. (2) Board Certified Pay - paid on a monthly basis to medical corps officers who are currently certified by an American medical or osteopathic examining board. The annual rate payable is determined by the number of years of creditable service for special pay. The annual amounts range from $2,500 to $6,000. (3) Additional Special Pay - paid as a lump sum bonus to medical corps officers who are not undergoing internship or initial residency training and who execute an agreement to remain on active duty for one year. The annual payment for all recipients is $15,000. (4) Incentive Special Pay (ISP)/Medical Incentive Pay - paid as a lump sum bonus to administratively eligible medical officers who are fully qualified in Department of Army (DA) selected specialty categories and who execute an agreement to remain on active duty for a period

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of not less than 12 months. The Office of the Surgeon General develops an ISP program annually tailored to meet the critical needs of the following year. Payment amounts range from $12,000 to $50,000. (5) Multi-year Special Pay - the FY 1991 DOD Authorization Act (PL 101-510) authorized a new multi-year special pay to be used in conjunction with ISP. Officers must be either unobligated for medical education and training or must have at least eight years of creditable service. There are several categories of specialties/pays with different pay levels for two-year, three-year, and four-year contracts. The annual amounts range from $12,000 to $50,000.

Other Special Pay - Dentist Pay - these payments are authorized by 37 U.S.C. 302b, 302h, and 311 and are intended to provide monetary incentives for the procurement and retention of dental officers. A dentist may qualify for the following special pays: (1) Variable Special Pay - paid monthly as an automatic entitlement to all dental corps officers on active duty. The annual rate of pay is based on the number of years of creditable service for special pay. The annual rate ranges from $3,000 to $12,000. (2) Board Certified Pay - paid on a monthly basis to dental corps officers who are currently certified by an American dental association specialty examining board or who have been awarded board certification equivalency by the Surgeon General. The annual rate is based on the number of years of creditable service for special pay. The annual rate ranges from $2,500 to $6,000. (3) Additional Special Pay - paid as a lump sum bonus to dental corps officers who are not undergoing internship of initial residency training, who have a minimum of three years of creditable service for special pay, and who execute an agreement to remain on active duty for one year. The rate of pay is based on the number of years of creditable service for special pay. The payment amount ranges from $4,000 to $15,000. (4) Multi-year Retention Bonus - the FY 1998 DOD Authorization Act (PL 105-85) authorized the use of a retention bonus for dental officers who execute a written agreement to remain on active duty for two, three, or four years after completion of any other active duty service commitment. Eligibility criteria require that a dental corps officer must be below the pay grade of O-7 and have a dental specialty in oral and maxillofacial surgery; have at least eight years of creditable service or have completed any active duty service commitment incurred for dental education and training; and have completed initial residency training (or will complete such training before 30 Sep of the fiscal year in which the officer enters into an agreement). The payment amount ranges from $6,000 to $50,000. (5) Accession Bonus - paid to an individual who is a graduate of an accredited dental school and who executes an agreement to remain on active duty as a commissioned officer for a period of not less than four years. The amount of the accession bonus may not exceed $30,000.

Nurses - nurse anesthetists are authorized to receive a special pay of $15,000 per individual for one year and requires a written agreement to remain on active duty for a period

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of not less than 12 months. A nurse anesthetist can receive a payment of $50,000 for multi year obligations. The accession bonus up to $30,000 per individual requires acceptance of a commission as an officer combined with an agreement to remain on active duty for four years.

Diplomat Pay for Psychologists and Board Certified Pay for Non-physician Health Care Providers - paid on a monthly basis to an officer who is designated a psychologist and has been awarded a diploma as a Diplomat in Psychology, or an officer who is a health care provider based on the DoD definition approved by the Assistant Secretary of Defense (Health Affairs (ASD(HA)) in coordination with the Services, has a post baccalaureate degree in the officer’s clinical specialty, and has obtained advance level (past entry level) certification by an approved professional board in the officer’s specialty. The annual amounts range from $2,000 to $5,000 and are based on years of creditable service. Eligible specialties and boards are determined by the ASD(HA) in coordination with the Services.

Optometrists - these payments are authorized by 37 U.S.C. 302a and are intended to provide monetary incentives for the procurement and retention of optometry officers (retention special pay not to exceed $6,000 for any twelve-month period). These officers are authorized $100 per month of active duty.

Pharmacists - these payments are authorized by 37 U.S.C. 302j and are paid to an individual who is a graduate of an accredited pharmacy school and who executes a written agreement to remain on active duty as a commissioned officer for a period not less than four years. The amount of the one-time accession bonus may not exceed $30,000. Section 302i of Title 37, USC, the amounts paid to the pharmacy officer is allocated by years of creditable service and ranges from $7,000 to $12,000 year.

Veterinarians - these payments are authorized by 37 U.S.C. 303 and are intended to provide monetary incentives for the procurement and retention of veterinary officers. These officers are authorized $100 per month of active duty. The National Defense Authorization Act for Fiscal Year 2000 (PL 106-65), Section 616, amended 37 U.S.C. 303, adding a special pay entitlement for Veterinary Corps officers who are board certified as a Diplomat. As required by statute, this special pay is effective 1 October 1999. Assistant Secretary of Defense (Health Affairs) policy implemented Veterinary Corps officer Diplomat Pay in a manner that will provide an incentive for Veterinary Corps officers to attain the highest level of professional achievement of Diplomat status in a veterinary medical specialty recognized by the American Veterinary Medical Association. The Diplomat Pay annual award, paid in equal monthly amounts, is based on creditable service as a Veterinary Corps officer on active duty. The annual range of the special is from $2,000 to $5,000.

Judge Advocate Continuation Pay (JACP) – The FY 2000 National Defense Authorization Act, section 629, provided Services Secretaries with the authority to pay eligible Judge Advocates (JA) continuation pay in return for additional active duty service obligations. The continuation pay cannot exceed $60,000 per any eligible JA. The Army started using the continuation pay in FY 2000 as one means of addressing a shortfall in JA retention.

Personal Allowance, General Officers - in addition to other pay and allowances authorized, an officer who is entitled to basic pay is entitled to a personal money allowance of (1) $500 a year while serving in the grade of lieutenant general, (2) $2,200 per year while serving in the

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grade of general, (3) $2,200 in addition to the personal money allowance in (1) above while serving as a senior member of the military staff committee of the United Nations and (4) $4,000 per year, in place of any other personal money allowance, while serving as Chief of Staff of the Army (37 U.S.C 414). Additionally, an officer serving as the Chairman of the Joint Chiefs of Staff is entitled to $4,000 per year in place of any other personal money allowance (37 U.S.C 413). This allowance is intended to partially reimburse high ranking officers for the many unusual personal expenses they incur in the performance of their official duties.

Diving Duty Pay - under regulations prescribed by the Secretary of the Army, an officer or warrant officer who is entitled to basic pay is entitled to special pay at a rate of not more than $200 a month for periods during which they (1) are assigned by orders to the duty of diving, (2) are required to maintain proficiency as a diver by frequent and regular dives, and (3) actually perform diving duty (37 U.S.C 304). Dive officers are assigned to a position as the leader of a diving detachment, which supports marine or special operation units. Duties of marine diving detachments include underwater construction (construction of piers and pipelines), harbor clearance, and ship salvage. Special Forces (combat) diving operations include infiltration and exfiltration, combat surface swimming, search and recovery, target attack, harassment and interdiction, and reconnaissance operations.

Sea Duty Pay - Army members who are entitled to basic pay are also entitled, while on sea duty, to special pay at rates which vary with grade and years of sea duty. The range of rates for warrant officers and officers is $130 to $410 per month. The term "sea duty" means duty performed by a member (1) while assigned to a ship, and while serving on a ship the primary mission of which is accomplished while underway; or (2) while assigned to a ship, and while serving on a ship the primary mission of which is normally accomplished while in port, but only while the ship is away from its home port for 30 or more consecutive days. Additionally, the member entitled to career sea pay who has served 36 consecutive months of sea duty is entitled to a career sea pay premium of $100 per month for the 37th month and each consecutive month of sea duty served (37 U.S.C. 305a). Individuals who are affected by career sea pay are generally assigned to Fort Eustis, Virginia; Hawaii; Panama; or the Azores.

Foreign Language Proficiency Pay (FLPP) - this pay is authorized under the provisions of 37 U.S.C. 316. FLPP is a monthly monetary incentive that is paid to all military personnel who qualify for and maintain the required proficiency in designated foreign languages. The monthly rate may not exceed $500.00 per individual for a single foreign language or $1,000 for any combination of more than one language.

Hostile Fire Pay - paid to officers on duty subject to hostile fire or imminent danger (37 U.S.C. 310). Paid at the rate of $225 per month.

Hardship Duty Pay – paid to officers performing duty in a location that is designated by The Secretary of Defense as hardship duty. The monthly rate may not exceed $300.00 per individual.

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The projected average number of personnel is based on the total spaces where each type of pay is authorized to meet force structure requirements. Funding requirements are based on the estimated number of officers eligible for each type of payment and rate of payment.

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The net change in special pays requirements is -$22.3 million between FY 2006 and FY 2007. The decrease is primarily due to the $35.6 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.

(1) Increase in payments for Foreign Language Pay: +$9.4 (2) Decrease for officers not receiving additional medical pay: -$31.7 million.


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OFFICER SPECIAL PAY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT MEDICAL PAY VARIABLE SPECIAL PAY............. 4,363 $ 7,983 $ 34,830 4,756 $ 7,983 $ 37,967 4,136 $ 7,983 $ 33,018 ADDITIONAL SPECIAL PAY........... 2,801 15,000 42,015 3,494 15,000 52,410 3,040 15,000 45,600 BOARD CERTIFIED PAY.............. 2,442 3,791 9,258 2,846 3,791 10,789 2,476 3,791 9,387 INCENTIVE SPECIAL PAY............ 4,895 19,440 95,159 3,281 22,000 72,182 2,803 22,000 61,666 MULTI-YEAR SPECIAL PAY........... 1,361 10,290 14,005 1,178 11,641 13,713 1,025 11,641 11,932 SUBTOTAL..................... 15,862 $ 195,267 15,555 $ 187,061 13,480 $ 161,603 OTHER SPECIAL PAY DENTIST PAY VARIABLE SPECIAL PAY........... 826 $ 8,090 $ 6,682 1,262 $ 8,090 $ 10,210 1,097 $ 8,090 $ 8,875 ADDITIONAL SPECIAL PAY......... 643 11,674 7,506 1,054 11,674 12,304 917 11,674 10,705 BOARD CERTIFIED PAY............ 300 5,435 1,631 480 5,435 2,609 418 5,436 2,272 MULTI-YEAR RETENTION BONUS..... 867 10,528 9,128 557 13,000 7,241 485 13,000 6,305 ACCESSION BONUS................ 3 30,000 90 20 30,000 600 20 30,000 600 SUBTOTAL..................... 2,639 $ 25,037 3,373 $ 32,964 2,937 $ 28,757 NURSE PAY ACCESSION BONUS................ 30 $ 5,000 $ 150 159 $ 10,000 $ 1,590 138 $ 10,000 $ 1,380 ANESTHETIST PAY................ 293 11,286 3,307 264 15,316 4,043 230 15,316 3,523 SUBTOTAL..................... 323 $ 3,457 423 $ 5,633 368 $ 4,903 BOARD CERTIFIED PAY FOR NON-PHYSICIAN HEALTH CARE PROVIDERS.......... 1,171 $ 2,446 $ 2,864 654 $ 2,446 $ 1,600 660 $ 2,446 $ 1,614 DIPLOMATE PAY FOR PSYCHOLOGISTS.. 48 3,625 174 48 3,625 174 48 3,625 174 OPTOMETRISTS PAY SPECIAL PAY.................... 125 $ 1,200 $ 150 127 $ 1,200 $ 152 127 $ 1,200 $ 152 RETENTION PAY.................. 0 6,000 0 114 6,000 684 114 6,000 684 SUBTOTAL..................... 125 $ 150 241 $ 836 241 $ 836 PHARMACY PAY SPECIAL PAY.................... 0 $ 8,000 $ 0 132 $ 8,000 $ 1,056 135 $ 8,000 $ 1,080 ACCESSION BONUS................ 0 30,000 0 16 30,000 480 16 30,000 480 SUBTOTAL..................... 0 $ 0 148 $ 1,536 151 $ 1,560 VETERINARIAN PAY SPECIAL PAY.................... 423 $ 1,200 $ 508 414 $ 1,200 $ 497 414 $ 1,200 $ 497 BOARD CERTIFIED PAY............ 0 3,500 0 192 3,500 672 192 3,500 672 SUBTOTAL..................... 423 $ 508 606 $ 1,169 606 $ 1,169 TOTAL MEDICAL PAY.................. 20,591 $ 227,457 21,048 $ 230,973 18,491 $ 200,616

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OFFICER SPECIAL PAY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT PERSONAL MONEY ALLOWANCES - GENERAL OFFICERS CHAIRMAN, JCS.................. 0 $ 4,000 $ 0 0 $ 4,000 $ 0 0 $ 4,000 $ 0 CHIEF OF STAFF................. 1 4,000 4 1 4,000 4 1 4,000 4 SENIOR MEMBER OF STAFF COMMITTEE OF UNITED NATIONS.. 5 2,700 14 1 2,700 3 1 2,700 3 GENERAL........................ 10 2,200 22 9 2,200 20 9 2,200 20 LIEUTENANT GENERAL............. 36 500 18 42 500 21 42 500 21 SUBTOTAL..................... 52 $ 58 53 $ 48 53 $ 48 DIVING DUTY PAY.................. 57 $ 2,684 $ 153 53 $ 2,642 $ 140 53 $ 2,642 $ 140 HOSTILE FIRE PAY................. 35,180 2,700 94,986 1,053 2,700 2,843 1,062 2,700 2,867 SEA DUTY PAY..................... 159 $ 3,528 $ 561 114 $ 5,912 $ 674 114 $ 5,912 $ 674 FOREIGN LANGUAGE PAY............. 2,615 1,623 4,244 2,586 2,035 5,263 7,192 2,035 14,636 HARDSHIP DUTY PAY................ 28,267 1,099 31,065 5,766 1,500 8,649 5,040 1,500 7,560 JUDGE ADVOCATE CONTINUATION PAY............... 80 19,741 1,579 172 21,400 3,681 150 21,400 3,210 HIGH-DEPLOYMENT PER DIEM ALLOWANCE............. 0 0 0 0 0 0 0 0 0 TOTAL OFFICER SPECIAL PAY.......... 87,001 $ 360,103 30,845 $ 252,271 32,155 $ 229,751

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Project: Basic Allowance for Housing - Officers Part I - Purpose and Scope Congress approved in the FY 1998 National Defense Authorization Act the payment of a Basic Allowance for Housing (BAH) to service members. The Overseas Housing Allowance (OHA) payment, formerly located in overseas station allowances moved into this section by a change in law. The continental United States, Alaska, and Hawaii BAH is termed BAH Domestic, while the overseas housing allowance is called BAH Overseas. Payment to service members is authorized by revisions to 37 U.S.C. 403. BAH inflation rate for FY 07 is 6 percent. Part II - Justification of Funds Requested

With congressional support, the Army’s Residential Communities and Barracks Modernization

program initiatives has had dramatic effect on improving quality of life for our Soldiers and their families. The Army already has privatized 64,000 housing units with a projected end state inventory of over 82,500 family housing units. Programs like the Residential Communities initiative will greatly help in cost savings and the Army’s efforts to retain soldiers and families. The net change in the BAH requirement is -$248.3 million between FY 2006 and FY 2007. The decrease is primarily due to the $190.0 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.

(1) Annualization of the 1 Jan 2006 6.0% increase for housing cost growth for BAH Domestic rates (with dependents and without dependents categories): +$14.4 million.

(2) The 1 Jan 2007 increase for housing cost growth for BAH Domestic rates (with dependents and without dependents categories): +$46.0 million.

(3) Decrease in total man-years: -$118.9 million. (4) Changes in grade structure: -$0.1 million. (5) Increase in BAH Overseas Rate Change: +$22.2 million. (6) Decrease in BAH Domestic payments: -$189.3 million. (7) Decrease in BAH Overseas payments: -$22.6 million.


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OFFICER BASIC ALLOWANCE FOR HOUSING - DOMESTIC (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT BAH WITH DEPENDENTS GENERAL...................... 169 24,385 $ 4,121 121 25,860 $ 3,129 151 27,444 $ 4,144 COLONEL...................... 2,857 23,243 66,405 3,291 24,675 81,205 2,311 26,155 60,444 LIEUTENANT COLONEL........... 8,164 21,726 177,371 8,115 23,099 187,448 6,277 24,485 153,692 MAJOR........................ 11,914 18,650 222,196 11,374 19,857 225,854 9,292 21,049 195,587 CAPTAIN...................... 15,009 15,590 233,990 16,291 16,651 271,261 13,069 17,650 230,668 1ST LIEUTENANT............... 4,344 13,320 57,862 3,105 14,266 44,296 2,953 15,122 44,655 2ND LIEUTENANT............... 2,240 12,435 27,854 2,247 13,238 29,746 1,698 14,032 23,826 OFFICER SUBTOTAL........... 44,697 $ 789,799 44,544 $ 842,939 35,751 $ 713,016 WARRANT OFFICER (5).......... 383 16,639 6,373 420 17,775 7,466 325 18,842 6,124 WARRANT OFFICER (4).......... 1,644 15,086 24,801 1,521 16,145 24,557 1,251 17,114 21,410 WARRANT OFFICER (3).......... 2,679 15,226 40,790 2,698 16,294 43,961 2,047 17,271 35,354 WARRANT OFFICER (2).......... 3,447 13,840 47,706 3,945 14,789 58,343 3,121 15,676 48,925 WARRANT OFFICER (1).......... 1,262 12,159 15,345 1,551 12,970 20,116 1,235 13,749 16,980 WARRANT OFFICER SUBTOTAL... 9,415 $ 135,015 10,135 $ 154,443 7,979 $ 128,793 TOTAL BAH WITH DEPENDENTS................ 54,112 $ 924,814 54,679 $ 997,382 43,730 $ 841,809 BAH DIFFERENTIAL............... 232 1,998 464 0 2,063 0 0 2,151 0 TOTAL.......................... 54,344 $ 925,278 54,679 $ 997,382 43,730 $ 841,809 BAH WITHOUT DEPENDENTS GENERAL...................... 10 21,600 $ 216 6 22,000 $ 132 9 23,889 $ 215 COLONEL...................... 297 19,576 5,814 338 20,601 6,963 216 21,837 4,717 LIEUTENANT COLONEL........... 1,070 18,452 19,744 1,107 19,544 21,635 740 20,716 15,330 MAJOR........................ 2,556 15,921 40,694 2,526 16,900 42,689 1,793 17,914 32,120 CAPTAIN...................... 8,157 13,008 106,106 9,169 13,872 127,192 6,391 14,701 93,954 1ST LIEUTENANT............... 5,099 10,922 55,691 4,574 11,712 53,571 3,118 12,415 38,710 2ND LIEUTENANT............... 3,211 9,608 30,851 3,122 10,287 32,116 2,189 10,904 23,869 OFFICER SUBTOTAL........... 20,400 $ 259,116 20,842 $ 284,298 14,456 $ 208,915 WARRANT OFFICER (5).......... 42 15,448 649 43 16,467 708 32 17,455 559 WARRANT OFFICER (4).......... 143 13,224 1,891 150 14,208 2,131 97 15,060 1,461 WARRANT OFFICER (3).......... 377 12,211 4,604 376 13,085 4,920 259 13,871 3,593 WARRANT OFFICER (2).......... 783 11,248 8,807 820 12,026 9,861 638 12,747 8,133 WARRANT OFFICER (1).......... 477 8,003 3,817 548 8,542 4,681 420 9,054 3,803 WARRANT OFFICER SUBTOTAL... 1,822 $ 19,768 1,937 $ 22,301 1,446 $ 17,549 TOTAL BAH WITHOUT DEPENDENTS............. 22,222 $ 278,884 22,779 $ 306,599 15,902 $ 226,464

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OFFICER BASIC ALLOWANCE FOR HOUSING - DOMESTIC (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT BAH PARTIAL ALLOWANCE BACHELOR GENERAL...................... 0 0 $ 0 0 0 $ 0 0 0 $ 0 COLONEL...................... 10 475 5 11 475 5 10 475 5 LIEUTENANT COLONEL........... 24 396 10 25 396 10 25 396 10 MAJOR........................ 69 320 22 73 320 23 73 320 23 CAPTAIN...................... 341 266 91 404 266 107 402 266 107 1ST LIEUTENANT............... 326 212 69 309 212 66 299 212 63 2ND LIEUTENANT............... 1,153 158 182 1,203 158 190 1,180 158 186 OFFICER SUBTOTAL........... 1,923 $ 379 2,025 $ 401 1,989 $ 394 WARRANT OFFICER (5).......... 1 302 0 1 302 0 1 302 0 WARRANT OFFICER (4).......... 4 302 1 5 302 2 4 302 1 WARRANT OFFICER (3).......... 16 248 4 17 248 4 17 248 4 WARRANT OFFICER (2).......... 38 191 7 46 191 9 47 191 9 WARRANT OFFICER (1).......... 36 166 6 47 166 8 47 166 8 WARRANT OFFICER SUBTOTAL... 95 $ 18 116 $ 23 116 $ 22 TOTAL BAH PARTIAL ALLOWANCE BACHELOR............. 2,018 $ 397 2,141 $ 424 2,105 $ 416 BAH INADEQUATE FAMILY HOUSING GENERAL...................... 0 0 $ 0 0 0 $ 0 0 0 $ 0 COLONEL...................... 0 5,811 0 0 6,169 0 0 6,539 0 LIEUTENANT COLONEL........... 0 5,432 0 0 5,775 0 0 6,121 0 MAJOR........................ 0 4,663 0 0 4,964 0 0 5,262 0 CAPTAIN...................... 0 3,898 0 0 4,163 0 0 4,413 0 1ST LIEUTENANT............... 0 3,330 0 0 3,567 0 0 3,781 0 2ND LIEUTENANT............... 0 3,109 0 0 3,310 0 0 3,508 0 OFFICER SUBTOTAL........... 0 $ 0 0 $ 0 0 $ 0 WARRANT OFFICER (5).......... 0 4,160 0 0 4,444 0 0 4,710 0 WARRANT OFFICER (4).......... 0 3,772 0 0 4,036 0 0 4,278 0 WARRANT OFFICER (3).......... 0 3,806 0 0 4,073 0 0 4,318 0 WARRANT OFFICER (2).......... 0 3,460 0 0 3,697 0 0 3,919 0 WARRANT OFFICER (1).......... 0 3,040 0 0 3,243 0 0 3,437 0 WARRANT OFFICER SUBTOTAL... 0 $ 0 0 $ 0 0 $ 0 TOTAL BAH INADEQUATE FAMILY HOUSING................. 0 $ 0 0 $ 0 0 $ 0 TOTAL BASIC ALLOWANCE FOR HOUSING - DOMESTIC......... 78,584 1,204,559 79,599 1,304,405 61,737 1,068,689

49

OFFICER BASIC ALLOWANCE FOR HOUSING - OVERSEAS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT BAH WITH DEPENDENTS GENERAL...................... 0 0 $ 0 0 0 $ 0 0 0 $ 0 COLONEL...................... 123 35,322 4,345 189 20,054 3,790 153 27,304 4,178 LIEUTENANT COLONEL........... 316 32,065 10,133 703 17,783 12,501 374 24,804 9,277 MAJOR........................ 572 29,737 17,010 1,027 17,368 17,837 685 23,015 15,765 CAPTAIN...................... 806 24,428 19,689 1,223 13,975 17,091 1,081 18,951 20,486 1ST LIEUTENANT............... 150 21,243 3,186 319 11,685 3,728 157 16,557 2,599 2ND LIEUTENANT............... 143 25,791 3,688 100 14,047 1,405 167 20,754 3,466 OFFICER SUBTOTAL........... 2,110 $ 58,051 3,561 $ 56,352 2,617 $ 55,771 WARRANT OFFICER (5).......... 15 28,525 428 31 15,478 480 19 22,033 419 WARRANT OFFICER (4).......... 54 28,404 1,534 128 14,222 1,820 63 21,965 1,384 WARRANT OFFICER (3).......... 97 25,184 2,443 219 14,437 3,162 114 19,505 2,224 WARRANT OFFICER (2).......... 118 24,541 2,896 362 12,809 4,637 165 19,242 3,175 WARRANT OFFICER (1).......... 11 24,244 267 73 14,129 1,031 17 18,843 320 WARRANT OFFICER SUBTOTAL... 295 $ 7,568 813 $ 11,130 378 $ 7,522 TOTAL BAH WITH DEPENDENTS................ 2,405 $ 65,619 4,374 $ 67,482 2,995 $ 63,293 BAH WITHOUT DEPENDENTS GENERAL...................... 0 0 $ 0 0 0 $ 0 0 0 $ 0 COLONEL...................... 107 25,185 2,695 43 18,340 789 68 19,524 1,328 LIEUTENANT COLONEL........... 424 25,163 10,669 219 17,862 3,912 255 19,577 4,992 MAJOR........................ 902 22,890 20,647 464 16,635 7,719 552 17,768 9,808 CAPTAIN...................... 1,784 19,813 35,346 1,772 14,567 25,813 1,217 15,353 18,685 1ST LIEUTENANT............... 393 18,038 7,089 1,124 13,375 15,034 209 13,955 2,917 2ND LIEUTENANT............... 118 19,107 2,255 495 13,659 6,761 70 14,863 1,040 OFFICER SUBTOTAL........... 3,728 $ 78,701 4,117 $ 60,028 2,371 $ 38,770 WARRANT OFFICER (5).......... 12 18,000 216 13 13,900 181 8 13,875 111 WARRANT OFFICER (4).......... 72 19,980 1,439 47 14,198 667 43 15,488 666 WARRANT OFFICER (3).......... 407 18,724 7,621 147 13,514 1,987 244 14,558 3,552 WARRANT OFFICER (2).......... 1,317 19,385 25,530 301 12,711 3,826 935 15,262 14,270 WARRANT OFFICER (1).......... 165 17,971 2,965 61 14,004 854 127 13,978 1,775 WARRANT OFFICER SUBTOTAL... 1,973 $ 37,771 569 $ 7,515 1,357 $ 20,374 TOTAL BAH WITHOUT DEPENDENTS............. 5,701 $ 116,472 4,686 $ 67,543 3,728 $ 59,144 TOTAL BASIC ALLOWANCE FOR HOUSING - OVERSEAS......... 8,106 $ 182,091 9,060 $ 135,025 6,723 $ 122,437 TOTAL OFFICER BASIC ALLOWANCE FOR HOUSING.................... 86,690 1,386,650 88,659 1,439,430 68,460 1,191,126

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Project: Basic Allowance for Subsistence - Officers

Part I - Purpose and Scope The funds requested will provide for subsistence allowance authorized by 37 U.S.C. 402 and P.L. 96-343. All officers, regardless of dependency status and pay grade, are paid a monthly Basic Allowance for Subsistence (BAS) at the same rate. BAS inflation rate for FY 07 is 1.9 percent.

Part II - Justification of Funds Requested Subsistence allowance costs are obtained by multiplying the projected average number eligible for the allowance by the annual statutory rate. The net change in the basic allowance for subsistence is -$17.4 million from FY 2006 to FY 2007. The decrease is primarily due to the $23.7 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.

(1) Decrease in officer man-years: -$20.8 million. (2) Change in annual pay rate: +$3.4 million.


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OFFICER BASIC ALLOWANCE FOR SUBSISTENCE (AMOUNT IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT BASIC ALLOWANCE FOR SUBSISTENCE.... 97,566 $ 2,182 $ 212,850 88,844 $ 2,239 $ 198,952 79,555 $ 2,282 $ 181,536

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Project: Station Allowance Overseas - Officers

Part I - Purpose and Scope The funds requested will provide payment of per diem allowance to officers on duty outside the United States considering all elements of the cost of living, including quarters, subsistence, and other necessary incidental expenses as prescribed by joint travel regulations and authorized under provisions of 37 U.S.C. 405.

Part II - Justification of Funds Requested The total Overseas Station Allowance includes Cost of Living and Temporary Lodging Allowances. Overseas station allowance (OSA) payments are determined by multiplying the projected number of personnel eligible for each type of allowance by an estimated average rate. Fluctuations in currency exchange rates have a direct impact on overseas station allowances. This is especially true in the case of Germany. The overseas station allowances are based on an exchange rate of 0.8530 Euro/$1 US Dollar. The FY 2007 military pay raise reflects a 2.2% across-the-board increase with selective increases for certain warrant officers effective 1 April 2007. The net change in the station allowance overseas requirement is -$4.0 million between FY 2006 and FY 2007. The decrease is primarily due to the $11.9 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.

(1) Annualization of the 1 Jan 2006, 3.1 percent pay raise: +$.7 million. (2) The 1 Jan 2007, 2.2 percent pay raise: +$2.0 million. (3) Increase in foreign currency pay rates: +$0.4 million. (4) Temporary lodging allowance decrease in number receiving: -$7.1 million.


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OFFICER OVERSEAS STATION ALLOWANCE (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT COST OF LIVING GENERAL...................... 51 $ 14,118 $ 720 57 $ 8,772 $ 500 55 $ 7,709 $ 424 COL.......................... 650 14,144 9,194 749 8,329 6,238 707 7,878 5,570 LTC.......................... 1,863 13,516 25,180 2,149 7,236 15,550 2,027 7,524 15,251 MAJ.......................... 2,912 11,530 33,575 3,358 6,590 22,129 3,167 6,418 20,326 CPT.......................... 5,311 8,877 47,146 6,126 4,641 28,431 5,777 4,941 28,544 2ND LIEUTENANT............... 2,559 7,087 18,136 2,951 3,446 10,169 2,783 3,945 10,979 1ST LIEUTENANT............... 1,007 5,603 5,642 1,161 3,859 4,480 1,095 3,119 3,415 CW5.......................... 67 12,671 849 77 7,060 544 73 7,203 526 CW4.......................... 362 10,389 3,761 417 5,461 2,277 394 5,842 2,302 CW3.......................... 943 9,734 9,179 1,088 4,983 5,422 1,026 5,531 5,675 CW2.......................... 1,260 8,581 10,812 1,456 4,910 7,149 1,370 4,901 6,714 WO1.......................... 322 6,829 2,199 371 3,439 1,276 350 3,883 1,359 SUBTOTAL.................... 17,307 $ 166,393 19,960 $ 104,165 18,824 $ 101,085 TEMPORARY LODGING ALLOWANCE.... 10,849 $ 1,742 $ 18,899 7,241 $ 1,768 $ 12,802 6,585 $ 1,798 $ 11,840 TOTAL OFFICER STATION ALLOWANCE OVERSEAS.. 28,156 $ 185,292 27,201 $ 116,967 25,409 $ 112,925

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Project: CONUS Cost of Living Allowance - Officers

Part I - Purpose and Scope The funds requested will provide payment of cost of living allowance (COLA) to soldiers who are assigned to high cost areas in the continental United States (CONUS). A high cost area is defined as a locality where the cost of living exceeds the average cost of living in CONUS by an established threshold percentage during a base period. The threshold percentage is established by the Secretary of Defense but cannot be less than eight percent. The current established threshold is 108 percent of the national cost of living average. The amount of COLA payable is the product of spendable income (based on regular military compensation level) times the difference between the COLA index for the individual’s high cost area and the threshold percentage. The FY 1995 DOD Authorization Act authorized this allowance.

Part II - Justification of Funds Requested CONUS COLA payments are determined by multiplying the projected number of personnel eligible by an estimated average rate. The net change for CONUS COLA is -$0.9 million between FY 2006 and FY 2007. The decrease is primarily due to the $0.9 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget and a decrease of number receiving CONUS COLA. Detailed cost computations are provided by the following table:

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OFFICER CONUS COST OF LIVING ALLOWANCE (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT CONUS COLA......... 3,876 $ 2,932 $ 11,364 3,720 $ 1,962 $ 7,299 3,224 $ 1,994 $ 6,429

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Project: Clothing Allowances - Officers

Part I - Purpose and Scope The requested funds will provide for the initial payment and supplemental allowance for purchases of required uniforms under provisions of 37 U.S.C. 415 and 416. Also included are funds for civilian clothing allowance for officers assigned to a permanent duty station outside the United States who are required to wear civilian clothing in the performance of official duty in accordance with 37 U.S.C. 419.

Part II - Justification of Funds Requested The estimated number of payments is based on the projected gains into the Army and the anticipated overseas requirements where individuals are required to wear civilian clothing in the performance of official duty. Allowances for uniform and clothing purchases are developed by multiplying the projected number eligible for each type of allowance by the applicable rate. The net change in the Uniform Clothing requirement is -$0.6 million between FY 2006 and FY 2007. The decrease is primarily due to the $0.7 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget and the number receiving uniform clothing. Detailed cost computations are provided by the following table:

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OFFICER CLOTHING ALLOWANCES (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT UNIFORM ALLOWANCES INITIAL................................. 12,285 $ 400 $ 4,914 6,872 $ 400 $ 2,749 6,993 $ 400 $ 2,797 ADDITIONAL.............................. 0 200 0 10,800 200 2,160 7,301 200 1,460 SUBTOTAL............................. 12,285 4,914 17,672 4,909 14,294 4,257 CIVILIAN CLOTHING........................ 429 $ 853 $ 366 862 $ 862 $ 743 880 $ 880 $ 774 TOTAL OFFICER CLOTHING ALLOWANCES........ 12,714 5,280 18,534 5,652 15,174 5,031

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Project: Family Separation Allowances - Officers

Part I - Purpose and Scope The funds are to provide family separation payments to officers with dependents on duty outside the U.S. or in Alaska for added separation expenses under two circumstances: (1) Travel of dependents to overseas duty station is not authorized and the member maintains two homes, one in CONUS for the family and one overseas for member. Payment is made at the monthly quarter’s allowance rate authorized for a member of the same grade without dependents. (2) When a member with dependents makes a permanent change of station, is on temporary duty travel, or on board ship for 30 days or more, either in CONUS or overseas, and the travel of dependents to the duty station is not authorized and dependents do not reside at or near the duty station.

Part II - Justification of Funds Requested The estimated number of payments is based on execution data projected into the future and modified to reflect anticipated overseas stationing requirements. Allowances for family separation are determined by multiplying the estimated number of personnel eligible for each type of family separation allowance by the statutory rate applicable. The net change in the family separation allowances is -$10.5 million between FY 2006 and FY 2007. The decrease is primarily due to the $4.1 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.

(1) Rate increase for FSA-I: +$0.2 million. (2) Decrease in number of receiving payments for FSA-II: -$10.7 million.


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OFFICER FAMILY SEPARATION ALLOWANCE (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT PCS OVERSEAS WITH DEPENDENTS NOT AUTHORIZED AND MAINTAINS TWO HOMES COL.......................... 5 $ 11,930 $ 60 6 $ 12,437 $ 75 6 $ 12,934 $ 78 LTC.......................... 42 11,482 482 54 11,973 647 47 12,452 585 MAJ.......................... 86 10,631 914 110 11,094 1,220 95 11,538 1,096 CPT.......................... 106 8,497 901 135 8,799 1,188 124 9,151 1,135 1LT.......................... 28 7,024 197 36 7,299 263 31 7,591 235 2LT.......................... 20 6,272 125 26 6,498 169 22 6,758 149 CW5.......................... 4 10,823 43 5 11,272 56 4 11,723 47 CW4.......................... 19 9,597 182 24 10,012 240 21 10,412 219 CW3.......................... 54 8,078 436 69 8,417 581 60 8,754 525 CW2.......................... 54 7,161 387 69 7,468 515 60 7,767 466 WO1.......................... 20 6,003 120 25 6,259 156 22 6,510 143 SUBTOTAL.................... 438 3,847 559 5,110 492 4,678 PCS CONUS OR OVERSEAS WITH DEPENDENTS NOT AUTHORIZED...... 12,481 3,000 37,443 5,161 3,000 15,483 2,266 3,000 6,798 TDY CONUS OR OVERSEAS FOR MORE THAN 30 DAYS WITH DEPENDENTS NOT RESIDING NEAR TDY STATION............... 8,269 3,000 24,807 3,655 3,000 10,965 3,179 3,000 9,537 TOTAL OFFICER FAMILY SEPARATION ALLOWANCES.......... 21,188 $ 66,097 9,375 $ 31,558 5,937 $ 21,013

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Project: Separation Payments - Officers

Part I - Purpose and Scope Severance Pay - payment of non-disability separation pay is authorized to retirement ineligible regular commissioned officers, warrant officers, and members of the reserve component who are involuntarily released from active duty after having completed at least 5 years of active duty. Payment of disability severance pay is authorized to members on active duty who are discharged because of physical disability and who have less than 20 years service and less than 30 percent disability. The FY 1992 National Defense Authorization Act approved two voluntary separation pay programs to use during the force drawdown. The programs apply to both officers and enlisted soldiers who have more than six and less than 20 years of service. The first, voluntary separation incentive (VSI), is an annuity that makes annual payments for twice the number of years served for soldiers who voluntarily leave active duty. The second program, special separation benefits (SSB), provides a lump sum of one and a half times involuntary separation pay (50% more) for soldiers who voluntarily leave active duty. VSI and SSB have been used to reduce involuntary separations. The authority to use VSI/SSB was extended from 30 September 1990 to 30 September 2001 by the FY 1999 National Defense Authorization Act. However, the Army reached its steady state end strength at the end of FY 1999 and has not offered VSI and SSB to any new takers since the end of FY 1999. Congress has extended this authority since 31 December 2001. The FY 1993 National Defense Authorization Act approved an active duty early retirement program for use during the force drawdown. The early retirement program has been used to shape the 15-20 year segment of the force. It has assisted the Army in achieving its drawdown goals of maintaining readiness and treating people fairly. Soldiers separated under the early retirement program receive the same benefits as individuals with 20 or more years of service. However, their retired pay is reduced by one percent for each year that they are short of 20 years of active duty. The early retirement amount is the product of 2.5 percent times years of service times basic pay times reduction factor. For the officers who leave under the early retirement program, the Army is required to establish a sub-account within the Military Personnel Appropriation to fund all early retirement payments up front in the Military Personnel Appropriation to cover the entire initial period, which is defined as that period equal to the difference between 20 years and the number of years completed by the member. The authority to use the early retirement program was extended from 1 Oct 1999 to 1 Oct 2001 by the FY 1999 National Defense Authorization Act. However, the Army reached its steady state end strength at the end of FY 1999 and has not offered early retirement to any new takers since the end of FY 1999.

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Accrued Leave Payments - members are authorized 30 days of ordinary leave annually. They may have accumulated a maximum of no more than 60 days unused leave at the beginning of any fiscal year. Upon retirement or separation, members are paid for unused accrued leave at the rate of basic pay to which entitled at time of release. Effective 10 Feb 1976, a member cannot be paid for more than 60 days of accrued leave during his military career. This limitation does not include payments for accrued leave made before that date.

Part II - Justification of Funds Requested Separation payments are determined by multiplying the projected number eligible for each type of payment by the estimated average payment applicable. Accumulated leave payments are made based upon leave accrued as of 1 Sep 1976. For leave accumulated prior to 1 Sep 1976 and retained throughout the career, payments include basic pay, basic allowance for subsistence, and basic allowance for quarters. For leave accumulated after 1 Sep 1976, to include the lowering of leave balances prior to 1 Sep 1976, the rate payable is basic pay only. Leave payments will not exceed the career total of 60 days. Severance pay for promotion Passover, for separation for cause, and for disability severance pay is 10 percent of the product of (a) years of active service and (b) 12 times the monthly basic pay to which the member was entitled at the time of discharge or release from active duty. The Special Separation Bonus (SSB) amount is based on annual base pay times 15 percent times years of service. The VSI (annuity) is a product of annual base pay times 2.5 percent times years of service and is paid for twice the number of years served, without any cost of living adjustments. The National Defense Authorization Acts for FY 1992 and FY 1993 required the establishment of a VSI fund effective 1 Jan 1993 from which VSI payments will be made. The Act further required the DOD Board of Actuaries to determine: (1) the amount necessary to liquidate the original unfunded liability, i.e., those personnel accepting VSI benefits prior to 1 Jan 1993 and (2) the total present value costs necessary to fund those members accepting VSI benefits after 1 Jan 1993. The FY 2000 Defense Authorization Act provides for a system that will give the soldier the option to retire under the pre-1986 military retirement system or accept a one-time $30,000 lump sum bonus and remain under the redux retirement plan. The lump sum bonus has been paid directly from the Military Personnel appropriation since FY 2001.

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The FY 07 military pay raise reflects a 2.2% across-the-board increase with selective increases for certain warrant officers effective 1 April 2007. The net change in the separation pay requirement is -$0.8 million between FY 2006 and FY 2007. The decrease is primarily due to the $9.1 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.

(1) Annualization of the 1 Jan 2006, 3.1 percent pay raise: +$1.5 million. (2) The 1 Jan 2007, 2.2 percent pay raise: +$.7 million. (3) Decrease in office losses reduces requirement for lump sum terminal leave, disability

severance pay, and involuntary separation pay: -$3.0 million. Detailed cost computations are provided by the following table:

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OFFICER SEPARATION PAYMENTS (AMOUNT IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVG AVG AVG NUMBER DAYS RATE AMOUNT NUMBER DAYS RATE AMOUNT NUMBER DAYS RATE AMOUNT LUMP SUM TERMINAL LEAVE PAYMENTS GENERAL.............................. 31 49.6 $ 19,161 $ 594 53 49.9 $ 20,075 $ 1,064 38 49.8 $ 20,553 $ 781 COLONEL.............................. 436 31.3 9,164 3,995 504 31.3 9,582 4,829 446 31.3 9,829 4,384 LIEUTENANT COLONEL................... 698 23.0 5,199 3,629 981 23.0 5,454 5,351 867 23.0 5,614 4,867 MAJOR................................ 570 23.5 4,421 2,520 655 23.5 4,605 3,016 583 23.5 4,705 2,743 CAPTAIN.............................. 1,714 19.2 2,850 4,885 2,338 19.2 2,948 6,893 2,070 19.2 2,992 6,194 1ST LIEUTENANT....................... 272 18.2 2,066 562 367 18.2 2,133 783 325 18.2 2,161 702 2ND LIEUTENANT....................... 74 17.6 1,492 110 103 17.6 1,566 161 97 17.6 1,613 156 WARRANT OFFICER(5)................... 52 28.0 6,045 314 62 28.0 6,281 389 56 28.0 6,535 366 WARRANT OFFICER(4)................... 157 20.8 3,682 578 208 20.8 3,838 798 184 20.8 3,968 730 WARRANT OFFICER(3)................... 203 18.8 2,722 553 266 18.8 2,842 756 235 18.8 2,972 698 WARRANT OFFICER(2)................... 135 26.1 3,046 411 193 26.1 3,152 608 169 26.1 3,283 555 WARRANT OFFICER(1)................... 19 21.7 2,168 41 21 21.7 2,266 48 26 21.7 2,372 62 SUBTOTAL........................... 4,361 $ 18,192 5,751 $ 24,696 5,096 $ 22,238 SEVERANCE PAY (DISABILITY)............ 198 $ 45,414 $ 8,992 145 $ 46,876 $ 6,797 128 $ 48,196 $ 6,169 SEVERANCE PAY (NON-PROMOTION)......... 0 0 0 0 0 0 0 0 0 INVOLUNTARY HALF-PAY(5%).............. 2 19,333 39 4 19,956 80 4 20,517 82 INVOLUNTARY FULL-PAY(10%)............. 37 59,216 2,191 137 61,123 8,374 148 62,844 9,301 SPECIAL SEPARATION BENEFIT(15%)....... 0 0 0 0 0 0 0 0 0 15 YEAR RETIREMENT.................... 0 0 0 0 0 0 0 0 0 SUBTOTAL SEPARATION PAY (NON-DISABILITY)..................... 39 $ 2,230 141 $ 8,454 152 $ 9,383 VOLUNTARY SEPARATION INCENTIVE (DIRECT MILPERS PAYMENTS) 1)......... 0 $ 14,378 0 $ 25,817 0 $ 21,625 THRU DEC 31, 1992.................. 14,378 25,817 21,625 JAN 1, 1993 AND AFTER.............. 0 0 0 0 0 0 $30,000 LUMP SUM BONUS................ $ 469 $ 4,419 $ 10,000 TOTAL OFFICER SEPARATION PAY.......... 4,598 $ 44,261 6,037 $ 70,183 5,376 $ 69,415 1) VSI recipients after 31 Dec 92 - Payments are made from the Military Personnel, Army Appropriation to the VSI Trust Fund.

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Project: Social Security Tax - Employer's Obligation - Officers

Part I - Purpose and Scope The funds requested provide for employer's tax to the Social Security Administration as required by the Federal Insurance Contribution Act (FICA).

Part II - Justification of Funds Requested The FICA tax is developed by multiplying the total earnings for FICA tax purposes by the applicable percent. The old age, survivor, and disability insurance (OASDI) rate is 6.2% and the Hospital Insurance (HI) rate is 1.45%. The maximum amounts of earnings per individual on which tax is payable are: Calendar Year OASDI Base Medicare Base 2005 $90,000 No upper limit 2006 $93,000 No upper limit 2007 $96,600 No upper limit The FY 2007 military pay raise reflects a 2.2% across-the-board increase with selective increases for certain warrant officers effective 1 April 2007. The net change in the FICA tax requirement is -$33.3 million between FY 2006 and FY 2007. The decrease is primarily due to the $47.5 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.

(1) Annualization of the 1 Jan 2006, 3.1 percent pay raise: +$3.0 million. (2) The 1 Jan 2007, 2.2 percent pay raise: +$6.2 million. (3) Force manning changes: -$42.5 million.


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OFFICER SOCIAL SECURITY TAX (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT SOCIAL SECURITY TAX - EMPLOYER'S CONTRIBUTION OF TAX ON BASIC PAY...... 97,088 $ 4,321.18 $ 419,535 87,513 $ 4,515.37 $ 395,154 78,299 $ 4,663.32 $ 365,133

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Schedule of Increases and Decreases (Amounts in thousands of dollars) Pay and Allowance of Enlisted Personnel FY 2006 Direct Program $ 20,434,703 Increases: Pricing Increases: a. Annualization of the FY 2006 3.1% pay raise 110,827 effective 1 January 2006. b. FY 2007 2.2% pay raise effective 1 Jan 2007. 262,008 c. Basic Allowance for Housing rates (Housing Cost 31,986 Growth) - Annualization of FY 2006 6.0% inflation effective 1 Jan 2006. d. Basic Allowance for Housing rates (Housing Cost 101,746 Growth) - Annualization of FY 2007 6.0% increase effective 1 Jan 2007. e. Inflation rate change for Enlisted Clothing Allowance. 6,004 f. Increase in rate for Loan Repayment Program. 4,687 g. Increase in rate for Educational Benefit. 21,125 h. Increase in rate for Family Separation Allowance Type I. 431 i. Increase in rate for Enlisted Separation Pay. 4,643 Total Pricing Increases 543,457 Program Increases: a. Grade Structure changes in Basic Pay, RPA & FICA. 192 b. Increase in number of soldiers receiving 23,570 Foreign Language Special Pay. c. G.I. Bill offset change. 439 d. Increase in number of soldiers receiving 6,025 Enlisted Separation Allowance (half, full, $30K lump sum Payments). e. Increase in the number of soldiers 4,818 receiving Enlisted Bonus payments (Residual and Anniversary). f. Increase in the number of soldiers 1,072 receiving Military Clothing. g. Increase in the number of soldiers 378 receiving overseas - TLA. Total Program Increases 46,004 Total Increases $ 589,461 Decreases: Pricing Decreases: a. Base Pay (Longevity). (219,758) b. Overseas Station allowance COLA. (726) c. Rate percentage change for Selective (234) Reenlistment Bonus. Total Pricing Decreases (220,718) Program Decreases: a. Strength changes (decrease in man-year and (1,280,977) grade structure change). b. Decrease in the number of soldiers (13,860) receiving Incentive Pay. c. Decrease in the number of soldiers (13,518) receiving Special Pay (Hardship Duty and Hostile Fire). d. Decrease in the number of soldiers (16,675) receiving Special Duty Assignment Pay. e. Decrease in the number of soldiers (42,343) receiving Enlistment Bonus (Initial). f. Decrease numbers of personnel receiving (3,247) education benefits (Army College Fund).

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g. Decrease in number of soldiers (4,926) participating in the Loan Repayment Program. h. Estimated change in grade structure, (707,088) man-power and Housing change for BAH-Domestic. i. Estimated change in grade structure, (24,430) man-power and Housing change for BAH-Overseas. j. Decrease in the estimated number of soldiers (59,140) receiving uniform/clothing allowance. k. Decrease in number of soldiers receiving (12,181) Family Separation Allowance. l. Decrease in number of soldiers receiving (23,777) Separation Pay (LSTL and Severance Disability payments). m. Decrease in number of soldiers receiving OSA - COLA. (25,592) n. Decrease in Reimbursable man-years. (1,590) o Decrease in the number of soldiers (316,088) receiving Selective Reenlistment Bonus. p. Decrease in CONUS COLA. (3,858) Total Program Decreases (2,558,800) Total Decreases $ (2,779,518) FY 2007 Direct Program $ 18,244,646

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Project: Basic Pay - Enlisted

Part I - Purpose and Scope The funds requested provide for the basic compensation and length of service pay increments of enlisted personnel on active duty under provisions of 37 U.S.C. 201, 203, 205, and 1009. Also included is the compensation of enlisted personnel of the reserve components, who have entered active duty as members of the active component of the Army.

Part II - Justification of Funds Requested The basic compensation is determined by multiplying the projected average number of personnel by grade by the estimated average annual compensation, including length of service increments for each grade. The FY 2007 military pay raise reflects a 2.2% across-the-board increase with selective increases for certain mid-grade senior enlisted personnel effective 1 April 2007.

The net change in the basic pay is -$851.2 million between FY 2006 and FY 2007. The decrease is primarily due to the $1.5 billion in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.

(1) Annualization of the 1 Jan 2006, 3.1% pay raise: +$81.0 million. (2) The 1 Jan 2007, 2.2 percent pay raise: +$187.3 million. (3) Increase in Grade structure change: +$0.1 million. (4) Decrease in total enlisted man-years of -35,671: -$962.0 million. (5) Change in basic pay rates (longevity): -$157.6 million.


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ENLISTED BASIC PAY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT SERGEANT MAJOR............ 4,154 $ 60,854 $ 252,788 3,489 $ 61,691 $ 215,240 3,135 $ 61,956 $ 194,232 1ST SGT/MASTER SGT........ 14,885 48,834 726,894 11,652 49,539 577,228 10,663 50,061 533,800 PLATOON SGT/SGT 1ST CLASS 47,492 41,474 1,969,683 40,373 41,695 1,683,352 36,460 42,227 1,539,596 STAFF SERGEANT............ 75,629 33,427 2,528,051 62,846 33,585 2,110,683 56,284 34,019 1,914,725 SERGEANT.................. 104,660 26,891 2,814,412 80,217 26,946 2,161,527 72,698 27,117 1,971,352 CORPORAL/SPECIALIST....... 154,389 21,782 3,362,901 122,053 21,925 2,676,012 115,112 22,131 2,547,544 PRIVATE FIRST CLASS....... 64,751 17,804 1,152,827 60,059 18,078 1,085,747 55,704 18,310 1,019,940 PRIVATE E2................ 31,034 16,049 498,065 34,185 16,212 554,207 31,740 16,305 517,521 PRIVATE E1................ 16,677 12,784 213,199 22,795 13,221 301,373 20,202 13,634 275,434 TOTAL ENLSITED BASIC PAY.. 513,671 $ 13,518,820 437,669 $ 11,365,369 401,998 $ 10,514,144

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Project: Retired Pay Accrual - Enlisted

Part I - Purpose and Scope The funds requested provide for the Department of Defense's contribution to its Military Retirement Fund, in accordance with 10 U.S.C. 1466.


The budget estimates are derived as a product of:

(a) The DOD Actuary-approved full-time Normal Cost Percentage (NCP) of basic pay is 26.5 percent for FY 2006 and FY 2007.

(b) The total amount of the basic pay expected to be paid during the fiscal year to members of the Active Army.

The FY 2007 military pay raise reflects a 2.2% across-the-board increase with selective increases for certain mid-grade senior enlisted personnel effective 1 April 2007. The net change in the retired pay accrual requirement is -$229.2 million between FY 2006 and FY 2007. The decrease is primarily due to the $398 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget. These changes are based on –

(1) Annualization of the 1 Jan 2006, 3.1% pay raise: +$21.5 million. (2) The 1 Jan 2007, 2.2 percent pay raise: +$49.6 million. (3) Increase in Grade structure change: +$0.4 million. (4) Decrease in total man-years: -$254.9 million. (5) Change in basic pay rates (longevity): -$41.8 million.


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ENLISTED RETIRED PAY ACCRUAL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT RPA............ 513,671 $ 7,202.51 $ 3,699,723 437,669 $ 6,881.39 $ 3,011,773 401,998 $ 6,931.82 $ 2,786,578

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(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 0 ESTIMATE FY 2006 $ 0 ACTUAL FY 2005 $ 2,025,505

Project: Health Care Accrual - Enlisted

Part I - Purpose and Scope The funds will be used to pay the health care accrual amount into the Department of Defense Medicare-eligible Retiree Health Care Fund (HCA) for the future Medicare-eligible health care costs for current military personnel in accordance with the FY 2001 National Defense Authorization Act (Public Law 106-398).


The budgetary estimates are derived as a product of the approved actuarial rate and the average strength. The estimate for over-65 retirees increased from FY 2004 to FY 2005 by +$265.2 million. The health care accrual budget for FY 2005, was +$2,025.5 million in FY 2005. Beginning in FY 2006 and as authorized by the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (P.L. 108-375), the health care accrual funding was transferred to the Medicare-Eligible Retiree Health Fund Contribution, Army Account. Detailed cost computations are provided by the following table:

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ENLISTED HEALTH CARE ACCRUAL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AMOUNT AMOUNT AMOUNT HEALTH CARE ACCRUAL...................... $ 2,025,505 $ 0 $ 0

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(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 85,392 ESTIMATE FY 2006 $ 99,252 ESTIMATE FY 2005 $ 85,847

Project: Incentive Pay for Hazardous Duty - Enlisted

Part I - Purpose and Scope The funds requested will provide for pay to enlisted personnel under provisions of 37 U.S.C. 301 for these types of duty: Crew Member - assigned to a position which requires at least four hours of aerial flight each month. The duties are essential to the operation of aircraft in-flight, or the duties are required to complete specific missions of the aircraft. The members perform duties as crew chiefs, medical airmen, firefighter crash rescue specialists, airborne electronic system operators, and air observers. Non-Crew Member - assigned to a position which requires at least four hours of aerial flight each month. The duties are directly related to in-flight missions of the aircraft and crew members cannot perform the duties. The members perform duties as aircraft maintenance personnel, aerial photographers, helicopter weapons systems repairmen, and medical personnel. Parachute - assigned to a permanent parachute position or airborne unit which requires parachute jumping as an essential part of military duty, or while undergoing airborne type training, or performing short-term parachute duty. Continuous payment of hazardous duty pay for parachute duty requires at least one parachute jump every three months. Pay for periods of short-term parachute duty is prorated based on the duration of the period such duty is required. High Altitude Low Opening (HALO) Jump Pay - assigned to a permanent military position which requires parachute jumping from at least 2,500 feet with a planned delay between exit and opening as an essential part of military duties, or while undergoing military free-fall type training at the US Army John F. Kennedy Special Warfare School. Soldiers must be graduates of the US Army military free-fall course under the proponency of the Commander, US Army JFK Special Warfare School or undergoing training for such designation. They must also be required by competent orders to engage in military free-fall parachute jumping from an aircraft in aerial flight and perform the specified minimum number of jumps to be entitled to pay. Proficiency requirements will remain the same as static line requirements. Demolition of Explosives - assigned to a position which requires the member as his primary duty to demolish, by use of objects, obstacles, or explosives; or recover and render harmless, by disarming or demolition, explosives which failed to function as intended or which have become a potential hazard. Demolition pay is limited to those serving in specialty 55D (EOD Specialists).

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Experimental Stress - serves as a human test subject in thermal stress experiments at Natick Laboratories; Natick, MA. The tests conducted include development of equipment (mostly clothing) and physiological testing. Also, low pressure, high altitude chamber training is conducted at the US Army Aero medical Center; Fort Rucker, Alabama. Toxic Fuel - assigned to a position on a Propellant Draining Kit (PDK) Team that requires handling and maintaining the propellants unsymmetrical dimethol hydrazine and inhibited red-fuming nitric acid used in the Lance missile system. Toxic Pesticides Exposure - for duty performed while assigned to entomology, pest control, pest management, or preventive medicine functions for a period of 30 consecutive days or more; that requires a member to perform in any calendar month a fumigation task utilizing phosphate, sulfuryl fluoride, hydrogen cyanide, methyl bromide, or a fumigant of comparable high acute toxicity and hazard potential. Chemical Munitions Handlers - this is a peacetime hazardous duty incentive pay for members of the uniformed services whose primary duties require the routine physical handling of chemical munitions or chemical surety material. Routine physical handling must be incident to manufacturing, maintenance, storage, testing, laboratory analysis, transportation, surveillance, assembly, disassembly, demilitarization, or disposal of chemical munitions or chemical surety material. This incentive pay is not authorized for individuals who handle the individual components of binary munitions, diluted solutions of toxic chemicals, riot control agents, chemical defoliants, herbicides, smoke, flame and incendiaries, or industrial chemicals.

Part II - Justification of Funds Requested The projected average number of payments is based on the total spaces where each type of pay is authorized to meet force structure requirements. The compensation for hazardous duty incentive pay is computed by multiplying the projected average number of each type by the statutory rate.

The net change in the incentive pay requirement totals -$13.9 million between FY 2006 and FY 2007. The decrease is primarily due to the $14.6 million in FY 2006 Title IX funding of which, $10.7 million was for Parachute Jump pay that is not included in the FY 2007 baseline budget.

These changes are based on –

(1) Decrease in the number of soldiers receiving Flying Duty Crew pay: -$ 1.2 (2) Decrease in the number of soldiers receiving other incentive pay: -$12.7


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ENLISTED INCENTIVE PAY FOR HAZARDOUS DUTY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT INCENTIVE PAY FLYING DUTY CREW MEMBERS SERGEANT MAJOR....................... 13 $ 2,880 $ 37 4 $ 2,880 $ 12 3 $ 2,880 $ 9 1ST SGT/MASTER SGT................... 140 2,880 403 52 2,880 150 32 2,880 92 PLATOON SGT/SGT 1ST CLASS............ 930 2,880 2,678 233 2,880 671 213 2,880 613 STAFF SGT............................ 2,922 2,580 7,539 820 2,580 2,116 669 2,580 1,726 SERGEANT............................. 3,595 2,280 8,197 975 2,280 2,223 823 2,280 1,876 CPL/SPECIALIST....................... 4,294 1,980 8,502 1,133 1,980 2,243 983 1,980 1,946 PRIVATE 1ST CLASS.................... 930 1,800 1,674 233 1,800 419 213 1,800 383 PRIVATE E2........................... 13 1,800 23 4 1,800 7 3 1,800 5 PRIVATE E1........................... 9 1,800 16 2 1,800 4 2 1,800 4 SUBTOTAL........................... 12,846 $ 29,069 3,456 $ 7,845 2,941 $ 6,654 FLYING DUTY NON-CREW MEMBERS........... 398 1,800 716 515 1,800 927 515 1,800 927 TOTAL FLYING DUTY PAY.................. 13,244 $ 29,785 3,971 $ 8,772 3,456 $ 7,581 OTHER HAZARDOUS DUTY EXPERIMENTAL STRESS 45 1,800 81 50 1,800 90 50 1,800 90 TOXIC PESTICIDE 0 1,800 0 4 1,800 7 4 1,800 7 TOXIC FUEL 0 1,800 0 0 1,800 0 0 1,800 0 CHEMICAL MUNITIONS 165 1,800 297 82 1,800 148 82 1,800 148 OTHER 210 $ 378 136 $ 245 136 $ 245 PARACHUTE JUMP (REGULAR) 28,397 1,800 51,115 38,737 1,800 69,727 33,116 1,800 59,609 PARACHUTE JUMP (HALO) 509 2,700 1,374 970 2,700 2,619 970 2,700 2,619 PARACHUTE JUMP 28,906 $ 52,489 39,707 $ 72,346 34,086 $ 62,228 DEMOLITION DUTY 1,775 1,800 3,195 2,552 4,095 10,450 2,183 4,095 8,939 MILITARY FIREFIGHTERS 0 1,800 0 333 1,800 599 333 1,800 599 ASSIGNMENT INCENTIVE PAY (KOREA) 0 1,800 0 3,800 1,800 6,840 3,222 1,800 5,800 TOTAL 30,891 $ 56,062 46,528 $ 90,480 39,960 $ 77,811 TOTAL ENLISTED INCENTIVE PAY FOR HAZARDOUS DUTY................... 44,135 $ 85,847 50,499 $ 99,252 43,416 $ 85,392

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Project: Special Pay - Enlisted


The funds requested will provide for Special Pay to enlisted personnel while on duty outside the contiguous 48 states and the District of Columbia, or while on sea duty. Special Pay is paid at rates varying from $8.00-$22.50 per month. Rates depend on grade, at places designated by the Secretary of Army under the provisions of 37 U.S.C. Personal Allowance for the Sergeant Major of the Army (SMA) and the Senior Enlisted Advisor (SEA) to the Chairman of the Joint Chief of Staff - in addition to other pay and allowances authorized, the SMA and the SEA who is entitled to basic pay is entitled to a personal money allowance of $2,000 a year while serving in that capacity. The SEA is authorized an increased in base pay per Public Law 90-200(1967) and authorized a personnel allowance per Public Law 106-398(2000). Diving Duty Pay - under regulations prescribed by the Secretary of the Army, an enlisted personnel who is entitled to basic pay is entitled to special pay at a rate of not more than $200 a month for periods during which they (1) are assigned by orders to the duty of diving, (2) are required to maintain proficiency as a diver by frequent and regular dives, and (3) actually perform diving duty (37 U.S.C 304). Enlisted Dive personnel are assigned to a position in a diving detachment, which supports marine or special operation units. Duties of marine diving detachments include underwater construction (construction of piers and pipelines), harbor clearance, and ship salvage. Special Forces (combat) diving operations include infiltration and exfiltration, combat surface swimming, search and recovery, target attack, harassment and interdiction, and reconnaissance operations. Sea Duty Pay - Army members who are entitled to basic pay are also entitled, while on sea duty, to special pay at rates which vary with grade and years of sea duty. The range of rates for enlisted personnel $130 to $410 per month. The term "sea duty" means duty performed by a member (1) while assigned to a ship, and while serving on a ship the primary mission of which is accomplished while underway; or (2) while assigned to a ship, and while serving on a ship the primary mission of which is normally accomplished while in port, but only while the ship is away from its home port for 30 or more consecutive days. Additionally, the member entitled to career sea pay who has served 36 consecutive months of sea duty is entitled to a career sea pay premium of $100 per month for the 37th month and each consecutive month of sea duty served (37 U.S.C. 305a). Individuals who are affected by career sea pay are generally assigned to either: Fort Eustis, Virginia; Hawaii; Panama; or the Azores.

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Foreign Language Proficiency Pay (FLPP) - this pay is authorized under the provisions of 37 U.S.C. 316. FLPP is a monthly monetary incentive that is paid to all military personnel who qualify for and maintain the required proficiency in designated foreign languages. The monthly rate may not exceed $500.00 per month for a single language or $1,000 per month for any combination of more than one language. Hostile Fire Pay - paid to personnel on duty subject to hostile fire or imminent danger (37 U.S.C. 310). Paid at the rate of $225 per month. Hardship Duty Pay – paid to personnel performing duty in a location that is designated by The Secretary of Defense as hardship duty. The monthly rate may not exceed $300.00 per individual. Overseas Extension Incentives Pay – special payments paid to enlisted personnel who extend their tour of service overseas under provisions of 37 U.S.C. 314.

Part II - Justification of Funds Requested The projected average number of payments is based on the total spaces where each type of pay is authorized to meet force structure requirements. Multiplying the projected number eligible for each type of pay by the statutory rate develops the compensation for each type of Special Pay.

The net change in the Special pay requirements is +$13.5 million between FY 2006 and FY 2007. These changes are based on –

(1) Decrease in the number of soldier receiving Hardship Duty pay: -$7.7 million. (2) Increase in the number of soldier receiving Foreign Language Proficiency Pay: +$23.6

million (3) Decrease in the number of soldier receiving Hardship Duty pay: -$2.4 million.


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ENLISTED SPECIAL PAY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT PERSONAL MONEY ALLOWANCES -SERGEANT MAJOR OF THE ARMY........ 1 2,000 2 2 2,000 4 2 2,000 4 SEA DUTY PAY....................... 346 $ 1,899 $ 657 417 $ 2,221 $ 926 417 $ 2,221 $ 926 HARDSHIP DUTY PAY.................. 134,578 1,487 200,117 34,851 1,500 52,277 29,721 1,500 44,582 FOREIGN LANGUAGE PAY............... 10,032 $ 965 $ 9,681 5,278 $ 4,309 $ 22,743 10,748 $ 4,309 $ 46,313 DIVING DUTY PAY.................... 565 2,411 1,362 354 2,446 866 354 2,446 866 HOSTILE FIRE PAY................... 147,900 2,700 399,330 5,749 2,700 15,522 4,876 2,700 13,165 OVERSEAS EXTENSION PAY............. 27 960 26 2,340 1,955 4,575 2,340 1,955 4,575 HIGH-DEPLOYMENT PER DIEM ALLOWANCE.............. 0 0 0 0 0 0 0 0 0 TOTAL ENLISTED SPECIAL PAY......... 293,449 $ 611,175 48,991 $ 96,913 48,458 $ 110,431

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Project: Special Duty Assignment Pay - Enlisted

Part I - Purpose and Scope The Special Duty Assignment Pay (SDAP) program is authorized under provisions of 37 U.S.C. 307, as amended, by PL-98-525. SDAP is a monthly monetary incentive that is paid to enlisted members who qualify for and serve in designated special duty assignments. The funds are utilized for recruiters, guidance counselors, retention NCO’s, drill sergeants, and specially designated personnel who have extremely demanding duties requiring extraordinary effort for satisfactory performance, and/or an unusual level of responsibility.

Part II - Justification and Funds Requested These funds are utilized to ensure readiness by compensating and influencing specially designated soldiers, recruiters, retention NCO’s, drill sergeants, and Special Forces who perform demanding duties which require special training and extraordinary effort for satisfactory performance. The net change in the Special Duty Assignment Pay requirement totals -$16.7 million between FY 2006 and FY 2007. Detailed cost computations are provided by the following table:

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ENLISTED SPECIAL DUTY ASSIGNMENT PAY (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT SPECIAL DUTY ASSIGNMENT SD 6 ($450.00).......................... 8,272 $ 5,400 $ 44,668 9,241 $ 5,400 $ 49,901 7,915 $ 5,400 $ 42,741 SD 5 ($375.00).......................... 6,389 4,500 28,751 3,614 4,500 16,263 3,095 4,500 13,928 SD 4 ($300.00).......................... 3,435 3,600 12,367 13,879 3,600 49,964 11,890 3,600 42,804 SD 3 ($225.00).......................... 1,207 2,700 3,259 51 2,700 138 44 2,700 119 TOTAL ENLISTED SPECIAL DUTY ASSIGNMENT PAY..................... 19,303 $ 89,045 26,785 $ 116,266 22,944 $ 99,592

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Project: Reenlistment Bonus - Enlisted


The purpose of the retention program is maintaining the quality force by retaining good Soldiers. The Retention Bonus programs increase the number of reenlistments in critical skills characterized by current or projected strength levels insufficient to adequately man the force. The programs help draw people from overage skills to shortage skills through the bonus extension and retraining program.

The Selective Reenlistment Bonus (SRB) Program is authorized under U.S.C 37, Section 308.

Under the law, a member of a uniformed service with at least 17 months of continuous active duty but not more than 18 years of active duty, is qualified in a critical skill and reenlists at least three years may be paid a bonus. The bonus will not exceed six months of the base pay multiplied by the additional obligated service (not to exceed six years) up to a maximum of $90,000. Army policy has set the maximum SRB allowed to be paid at $40,000 and a maximum of 16 years of service.

The Critical Skills Retention Bonus (CSRB) Program is authorized under U.S.C 37, Section

323. Under the law, a member of a uniformed service who is qualified in a critical skill and reenlists for a period of at least one year may be paid a bonus. The member may receive multiple bonuses under this provision; however, the total amount may not exceed $200,000. OSD policy has set the maximum at $150,000 for a six year reenlistment for Special Operations Soldiers beyond 20 years of service.


The Selective Reenlistment Bonus Program is a key component in MOS/grade cell force

alignment initiatives. The focus of the SRB Program is to reenlist sufficient specialists and sergeants to overcome or prevent present and future shortfalls in sergeant and staff sergeant manning. Shortfalls in these grades have a direct negative impact on the combat and operational readiness of Army units.

For shortage skills, we continually evaluate the Retention Programs and offer bonuses

where appropriate. Other adjustments to align the force include: reclassification of soldiers into shortage skills, and increasing promotion opportunities to soldiers in shortage skills. In overage skills, the Army constrains promotion opportunity, constrains reclassification of soldiers into these skills, restricts fully qualified prior service personnel from enlisting in these skills, and does not permit retention beyond the Retention Control Point (RCP). The Army will continue to focus and apply management initiatives to develop an optimal force structure.

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The following are the Army's most critically imbalanced skills as of January 2006

(restricted to MOS with authorizations in at least four grade cells): Shortage MOS

MOS Title 13F Fire Support Specialist

13W Fiend Artillery Meteorological (FA MET) Crewmember 18 Special Forces (Series) 31E Internment/Resettlement Specialist 74D Chemical Operations Specialist 88M Motor Transport Operator 89D Explosive Ordnance Disposal (EOD) Specialist 91W Health Care Specialist 92W Water Treatment Specialist 96U Unmanned Aerial Operator 97E Human Intelligence (HUMINT) Collector 98G Cryptologic Communications Interceptor/Locator As of FY 2005, all SRB payments are paid as lump sum and Anniversary payments are for

contracts entered into prior to FY 2005. The net change in the incentive pay requirement is -$316.3 million between FY 2006 and FY

2007. The decrease is primarily due to the $319 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget.


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ENLISTED REENLISTMENT BONUS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT SELECTIVE REENLISTMENT BONUS INITIAL PAYMENTS........................... 44,459 $ 10,500 $ 466,818 37,374 $ 10,600 $ 396,163 8,550 $ 10,600 $ 90,632 ANNIVERSARY PAYMENTS....................... 36,510 1,062 38,774 22,341 1,062 23,726 12,402 1,043 12,935 TOTAL REENLISTMENT BONUS..................... 80,969 $ 505,592 59,715 $ 419,889 20,952 $ 103,567

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ENLISTED REENLISTMENT BONUS (AMOUNTS IN THOUSANDS OF DOLLARS) FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 NUMBER AMOUNT NUMBER AMOUNT NUMBER AMOUNT NUMBER AMOUNT NUMBER AMOUNT NUMBER AMOUNT NUMBER AMOUNT NUMBER AMOUNT PRIOR OBLIGATIONS........ 36,510 38,774 22,341 23,726 12,402 12,935 4,700 5,040 1,980 2,130 0 0 0 0 0 0 ACCELERATED PAYMENTS........... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 FY 2005 INITIAL PAYMENTS......... 44,459 466,818 ANNIVERSARY PAYMENTS......... 0 0 0 0 0 0 0 0 0 0 0 0 0 0 FY 2006 INITIAL PAYMENTS......... 37,374 396,163 ANNIVERSARY PAYMENTS......... 0 0 0 0 0 0 0 0 0 0 0 0 FY 2007 INITIAL PAYMENTS......... 8,550 90,632 ANNIVERSARY PAYMENTS......... 0 0 0 0 0 0 0 0 0 0 FY 2008 INITIAL PAYMENTS......... 9,943 105,400 ANNIVERSARY PAYMENTS......... 0 0 0 0 0 0 0 0 TOTAL INITIAL PAYMENTS......... 44,459 466,818 37,374 396,163 8,550 90,632 9,943 105,400 ANNIVERSARY PAYMENTS......... 36,510 38,774 22,341 23,726 12,402 12,935 4,700 5,040 1,980 2,130 0 0 0 0 0 0 TOTAL SRB........ 80,969 505,592 59,715 419,889 20,952 103,567 14,643 110,440 12,680 115,553 11,578 122,726 9,110 96,570 0 0

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Project: Enlistment Bonus - Enlisted

Part I - Purpose and Scope Enlistment Bonuses are used to attract high quality recruits, as defined by the Armed Service Vocational Aptitude Battery (ASVAB) test scores, into designated Army skills, which are difficult to fill with qualified enlistees. The payment is authorized by 37 U.S.C. 309, which allows up to $40,000 for an enlistment. The Army pays up to $10,000 at their first permanent duty station after successful completion of basic and skill training, then equal periodic payments, if required. Army is paying the $40,000 bonus to recruits who select a selective critical MOS and are willing to ship to the training within 30 days.

New Payments - payments are made to individuals who enter active duty and complete skill training during the same fiscal year.

Residual Payments - payments are made to individuals who entered the service in previous

fiscal years. An average of four months elapse before a Soldier completes skill training and payments are authorized.

Anniversary Payments - by Army policy, up to $10,000 may be paid initially in lump sum. Remaining amounts above $10,000 are paid in equal installments on the Soldier’s anniversary date over the remaining years of his contract. These payments are contractual obligations paid in the year earned.

Part II - Justification of Funds Requested The Enlistment Bonus Program is designed to expand penetration into the higher quality markets. The Army offers various different levels (amounts) of the enlistment bonus based upon the criticality of the MOS and length of the enlistment contract. Bonuses compliment the top reasons (pay, tuition for college) for considering enlisting in the Army according to youth polls.

The program is tied to a level commensurate with the programmed recruiting mission. These

funding levels are critical to attaining Army quality goals during a period of a low unemployment market and low positive propensity of the youth market to enlist. The Enlistment Bonus Program reflects Army Leadership and Congressional continued reliance on the enlistment bonus to channel applicants into critical MOS training seats at the required time to accomplish accession requirements.

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The net change in the Enlistment Bonuses requirement is -$37.4 million between FY 2006 and FY 2007. The decrease is primarily due to the $105 million FY 2006 Title IX funding that is not included in the FY 2007 baseline budget. These changes are based on –

(1) Decrease in the number of soldiers receiving new payments: -$42.3 million. (2) Increase in the number of soldiers receiving Residual payments: +$2.1 million. (3) Increase in the number of soldiers receiving Anniversary payments: $2.8 million.


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ENLISTMENT BONUS PROGRAM (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT ENLISTMENT BONUS PROGRAM NEW PAYMENTS UP THRU $2,000............................ 3,603 $ 1,000 $ 3,603 1,609 $ 1,000 $ 1,609 1,441 $ 1,000 $ 1,441 UP THRU $3,000............................ 3,980 2,000 7,960 1,983 2,000 3,966 1,819 2,000 3,638 UP THRU $4,000............................ 3,520 3,000 10,560 1,519 3,000 4,557 2,505 3,000 7,515 UP THRU $5,000............................ 2,509 4,000 10,036 2,509 4,000 10,036 2,477 4,000 9,908 UP THRU $6,000............................ 3,960 5,000 19,800 3,951 5,000 19,755 2,315 5,000 11,575 UP THRU $7,000............................ 6,510 6,000 39,060 6,510 6,000 39,060 1,833 6,000 10,998 UP THRU $12,000........................... 10,322 7,000 72,254 10,322 7,000 72,254 9,117 7,000 63,819 TOTAL 34,404 $ 163,273 28,403 $ 151,237 21,507 $ 108,894 RESIDUAL PAYMENTS UP THRU $2,000............................ 0 $ 1,000 $ 0 677 $ 1,000 $ 677 718 $ 1,000 $ 718 UP THRU $3,000............................ 0 2,000 0 1,020 2,000 2,040 1,042 2,000 2,084 UP THRU $4,000............................ 0 3,000 0 1,410 3,000 4,230 1,441 3,000 4,323 UP THRU $5,000............................ 0 4,000 0 1,401 4,000 5,604 1,425 4,000 5,700 UP THRU $6,000............................ 0 5,000 0 1,209 5,000 6,045 1,331 5,000 6,655 UP THRU $7,000............................ 0 6,000 0 1,037 6,000 6,222 1,054 6,000 6,324 UP THRU $12,000........................... 0 7,000 0 5,091 7,000 35,637 5,244 7,000 36,708 TOTAL 0 $ 0 11,845 $ 60,455 12,255 $ 62,512 ANNIVERSARY (INCREMENTAL) PAYMENTS.......... 1,428 $ 1,830 $ 2,613 14,284 $ 1,830 $ 26,140 15,793 $ 1,830 $ 28,901 TOTAL ENLISTMENT BONUS PROGRAM.............. 35,832 $ 165,886 54,532 $ 237,832 49,555 $ 200,307

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ENLISTMENT BONUS INCREMENT PAYMENTS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 # PAYMENTS $ AMOUNTS # PAYMENTS $ AMOUNTS # PAYMENTS $ AMOUNTS NEW OBLIGATIONS........................ 357 $ 653 3,571 $ 6,535 3,948 $ 7,225 PRIOR OBLIGATIONS...................... 1,071 1,960 10,713 19,605 11,845 21,676 TOTAL INCREMENT PAYMENTS............... 1,428 $ 2,613 14,284 $ 26,140 15,793 $ 28,901

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Project: Educational Benefits

Part I - Purpose and Scope The Army College Fund (ACF) is governed by Title 38 U.S.C., Chapter 30. The ACF is used to attract high quality high school diploma graduates into designated Army skills which are difficult to fill with qualified enlistees. The program will fund additional and supplemental benefit payments above a basic benefit (the Montgomery GI Bill) to be budgeted by the Department of Veteran Affairs (DVA). This program is budgeted on an accrual basis by the DOD. The DOD Board of Actuaries establishes per capita normal costs and amortization rates for each fiscal year. Funds are for the payment to the Department of Defense (DOD) Educational Benefits Trust Fund. Actual benefit payments to individuals will be made by the DVA from funds transferred from the Trust Fund account.

Part II - Justification of Funds Requested All individuals entering active duty after July 1, 1985 (including those in the Delayed Entry Program) are eligible to receive additional and supplemental educational assistance at the discretion of the Secretary of Defense. Basic eligibility to qualify for these educational benefits is contingent upon the soldier electing to participate in the basic program - the Montgomery GI Bill. Exceptions to eligibility are those who have received a commission from a Service academy or completed a ROTC Scholarship Program. The ACF Program is designed to expand penetration into the quality market and distribute quality among the 200 plus initial entry military occupational specialties (MOS). Offering an ACF, especially at the higher levels, allows the Army to channel applicants into critical MOSs and support readiness. It also compliments one of the top reasons -- tuition for college -- for considering enlisting in the Army according to youth polls. The program is tied to a level commensurate with the programmed recruiting mission. These funding levels are critical to attaining Army quality goals during a period of a lower unemployment economy and low positive propensity of the youth market to enlist. It has become increasingly difficult to recruit sufficient Soldiers to sustain a quality force. In P.L. 107-103, Congress increased the amount of the basic GI Bill benefit paid by Veterans Affairs and now the basic benefit increases annually with the Consumer Price Index.

Educational Benefits increased by $17.9 million between FY 2006 and FY 2007 due to an increase in

the per capita amounts and amortization payment amounts for certain educational benefits.


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ENLISTED EDUCATIONAL BENEFITS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 ELIGIBLES RATE AMOUNT ELIGIBLES RATE AMOUNT ELIGIBLES RATE AMOUNT COLLEGE FUND SIX YEAR COMMITMENT ($50K)........... 59 $ 7,658 $ 452 64 $ 3,290 $ 211 88 $ 7,283 $ 641 FIVE YEAR COMMITMENT ($47K).......... 1,159 8,657 10,033 1,300 3,489 4,536 900 7,895 7,106 FOUR YEAR COMMITMENT ($42K).......... 3,442 8,606 29,622 3,774 3,299 12,450 3,274 7,315 23,949 FOUR YEAR COMMITMENT ($30K).......... 0 0 0 0 0 0 0 0 0 FOUR YEAR COMMITMENT ($40K).......... 0 0 0 0 0 0 0 0 0 FOUR YEAR COMMITMENT ($50K).......... 0 0 0 0 0 0 0 0 0 SUBTOTAL FOUR YEAR................. 3,442 $ 29,622 3,774 $ 12,450 3,274 $ 23,949 THREE YEAR COMMITMENT ($37K)......... 1,193 5,256 6,270 1,762 2,000 3,524 1,622 4,257 6,905 THREE YEAR COMMITMENT ($35K)......... 0 0 0 0 0 0 0 0 0 SUBTOTAL THREE YEAR................ 1,193 $ 6,270 1,762 $ 3,524 1,622 $ 6,905 TWO YEAR COMMITMENT ($30K)........... 56 1,586 89 0 581 0 0 1,204 0 TWO YEAR COMMITMENT ($28.5K)......... 0 0 0 0 0 0 0 0 0 SUBTOTAL TWO YEAR.................. 56 $ 89 0 $ 0 0 $ 0 TOTAL $28.5K......................... 0 0 0 0 0 0 TOTAL $30K........................... 56 89 0 0 0 0 TOTAL $35K........................... 0 0 0 0 0 0 TOTAL $37K........................... 1,193 6,270 1,762 3,524 1,622 6,905 TOTAL $40K........................... 0 0 0 0 0 0 TOTAL $42K........................... 3,442 29,622 3,774 12,450 3,274 23,949 TOTAL $47K........................... 1,159 10,033 1,300 4,536 900 7,106 TOTAL $50K........................... 59 452 64 211 88 641 GRAND TOTAL COLLEGE FUND........... 5,909 $ 46,466 6,900 $ 20,721 5,884 $ 38,601

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Project: Loan Repayment Program - Enlisted

Part I - Purpose and Scope The Loan Repayment Program (LRP) is authorized by PL 99-145, Section 2171. Guidelines for the LRP are contained in Chapter 109, Title 10, United States Code. The LRP pays for federal student loans guaranteed by the Department of Education under the Higher Education Act of 1965 up to a maximum of $65,000 (limited by Army policy). The LRP is an enlistment incentive designed to increase Test Score Category I-IIIA enlistments and attract recruits into designated Army skills, which are difficult to fill with qualified enlistees. The LRP repays $1,500 or one-third of the qualified loan whichever is greater, for every year of service.

Part II - Justification and Funds Requested According to the University of Michigan Annual Monitoring the Future Survey, 80% of high school seniors plan to attend a four-year college and are applying for loans in increasing numbers. Conversely, the College Board has determined that 50% of all students entering four-year colleges are not enrolled after two years, primarily due to financial reasons. The LRP is an effective tool for penetrating the college market, especially that segment that have opted out at a point prior to graduation due to financial constraints. The Loan Repayment Program decreased by -$.2 million between FY 2006 and FY 2007 due to the number of participants in the program. Detailed cost computations are provided by the following table:

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ENLISTED LOAN REPAYMENT PROGRAM (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER AMOUNT NUMBER AMOUNT NUMBER AMOUNT LOAN REPAYMENT PROGRAM............. 6,777 $ 34,280 13,215 $ 49,281 11,894 $ 49,042

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Project: Basic Allowance for Housing - Enlisted

Part I - Purpose and Scope Congress approved in the FY 1998 National Defense Authorization Act the payment of a basic allowance for housing (BAH) to service members. The overseas housing allowance (OHA) payment, formerly located in overseas station allowances, moved into this section by a change in law. The continental United States, Alaska and Hawaii BAH is included in BAH Domestic, while the overseas housing allowance is called BAH Overseas. Payment to service members is authorized by revisions to 37 U.S.C. 403.

Part II - Justification of Funds Requested The net change in the basic allowance for housing requirement is -$597.8 million between FY 2006 and FY 2007. The decrease is primarily due to the $496 million in FY 2006 Title IX funding that is not included in the FY 2007 baseline budget. These changes are based on –

(1) Annualization of the 1 Jan 2006, 6.0% housing cost growth: +$32.0 million. (2) The FY 2007, 6.0% housing cost growth: +$101.7 million. (3) Decrease in Grade structure change: -$.4 million. (4) Decrease in total man-year: -$227.1 million. (5) Decrease in percent receiving: -$504.0 million.


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ENLISTED BASIC ALLOWANCE FOR HOUSING - DOMESTIC (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT BAH WITH DEPENDENTS SERGEANT MAJOR...... 3,068 $ 15,620 $ 47,922 2,427 $ 16,718 $ 40,575 1,902 $ 17,721 $ 33,705 1ST SGT/MASTER SGT.. 11,312 14,774 167,123 9,382 15,777 148,020 6,676 16,724 111,649 PLTN SGT/SFC........ 34,085 13,722 467,714 28,539 14,655 418,239 21,738 15,534 337,678 STAFF SERGEANT...... 51,144 13,077 668,810 43,579 13,978 609,147 31,137 14,817 461,357 SERGEANT............ 57,307 11,647 667,455 40,393 12,484 504,266 32,239 13,233 426,619 CORPORAL/SPC4....... 59,903 10,586 634,133 47,558 11,359 540,211 36,463 12,041 439,051 PRIVATE, 1ST CL..... 15,949 10,368 165,359 14,369 11,008 158,174 10,791 11,668 125,909 PRIVATE (E2)........ 6,130 10,097 61,895 6,319 10,761 67,999 5,185 11,407 59,145 PRIVATE (E1)........ 2,494 10,705 26,698 3,620 11,376 41,181 2,677 12,058 32,279 TOTAL BAH WITH DEPENDENTS....... 241,392 $ 2,907,109 196,186 $ 2,527,812 148,808 $ 2,027,392 BAH DIFFERENTIAL...... 10,440 2,455 25,630 0 2,534 0 0 2,642 0 TOTAL................. 251,832 $ 2,932,739 196,186 $ 2,527,812 148,808 $ 2,027,392 BAH WITHOUT DEPENDENTS SERGEANT MAJOR...... 457 $ 11,796 $ 5,391 340 $ 12,527 $ 4,259 230 $ 13,279 $ 3,054 1ST SGT/MASTER SGT.. 1,858 11,208 20,824 1,325 11,890 15,754 949 12,603 11,960 PLTN SGT/SFC........ 6,781 9,767 66,230 5,321 10,381 55,237 3,758 11,004 41,353 STAFF SERGEANT...... 13,675 9,133 124,894 9,398 9,685 91,020 6,970 10,266 71,554 SERGEANT............ 21,098 8,668 182,877 13,350 9,186 122,633 10,362 9,737 100,895 CORPORAL/SPC4....... 17,119 7,886 135,000 11,070 8,408 93,077 9,089 8,913 81,010 PRIVATE, 1ST CL..... 2,858 8,262 23,613 1,827 8,866 16,198 1,660 9,398 15,601 PRIVATE (E2)........ 804 7,832 6,297 586 8,402 4,924 676 8,906 6,020 PRIVATE (E1)........ 306 7,617 2,331 296 8,118 2,403 366 8,605 3,149 TOTAL BAH WITHOUT DEPENDENTS.... 64,956 $ 567,457 43,513 $ 405,505 34,060 $ 334,596

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ENLISTED BASIC ALLOWANCE FOR HOUSING - DOMESTIC (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT BAH PARTIAL ALLOWANCE BACHELOR SERGEANT MAJOR...... 43 $ 223 $ 10 14 $ 223 $ 3 18 $ 223 $ 4 1ST SGT/MASTER SGT.. 76 184 14 44 184 8 18 184 3 PLTN SGT/SFC........ 497 144 72 210 144 30 131 144 19 STAFF SERGEANT...... 3,979 119 474 1,823 119 217 1,235 119 147 SERGEANT............ 49,828 104 5,182 11,772 104 1,224 10,348 104 1,076 CORPORAL/SPC4....... 223,119 97 21,643 54,753 97 5,311 47,681 97 4,625 PRIVATE, 1ST CL..... 147,693 94 13,883 41,496 94 3,901 35,479 94 3,335 PRIVATE (E2)........ 74,219 86 6,383 24,862 86 2,138 21,510 86 1,850 PRIVATE (E1)........ 41,831 83 3,472 16,036 83 1,331 12,998 83 1,079 TOTAL BAH PARTIAL ALLOWANCE BACHELOR.... 541,285 $ 51,133 151,010 $ 14,163 129,418 $ 12,138 BAH INADEQUATE FAMILY HOUSING SERGEANT MAJOR...... 0 $ 3,905 $ 0 0 $ 4,179 $ 0 0 $ 4,430 $ 0 1ST SGT/MASTER SGT.. 252 3,693 931 1 3,944 4 1 4,181 4 PLTN SGT/SFC........ 756 3,431 2,594 0 3,664 0 4 3,884 16 STAFF SERGEANT...... 2,267 3,269 7,411 0 3,494 0 8 3,704 30 SERGEANT............ 3,526 2,912 10,268 7 3,121 22 11 3,308 36 CORPORAL/SPC4....... 7,808 2,647 20,668 45 2,840 128 27 3,010 81 PRIVATE, 1ST CL..... 6,801 2,592 17,628 28 2,752 77 27 2,917 79 PRIVATE (E2)........ 1,259 2,524 3,178 9 2,690 24 6 2,852 17 PRIVATE (E1)........ 252 2,676 674 5 2,844 14 1 3,015 3 TOTAL BAH INADEQUATE FAMILY HOUSING........ 22,921 $ 63,352 95 $ 269 85 $ 266 TOTAL BASIC ALLOWANCE FOR HOUSING - DOMESTIC 880,994 $ 3,614,681 390,804 $ 2,947,749 312,371 $ 2,374,392

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ENLISTED BASIC ALLOWANCE FOR HOUSING - OVERSEAS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT BAH WITH DEPENDENTS SERGEANT MAJOR...... 50 $ 28,308 $ 1,415 88 $ 28,308 $ 2,491 91 $ 28,308 $ 2,576 1ST SGT/MASTER SGT.. 178 24,771 4,409 287 24,771 7,109 295 24,771 7,307 PLTN SGT/SFC........ 450 22,694 10,212 794 22,694 18,019 819 22,694 18,586 STAFF SERGEANT...... 582 20,805 12,109 1,066 20,805 22,178 1,070 20,805 22,261 SERGEANT............ 554 18,861 10,449 1,143 18,861 21,558 914 18,861 17,239 CORPORAL/SPC4....... 233 17,190 4,005 784 17,190 13,477 455 17,190 7,821 PRIVATE, 1ST CL..... 21 17,626 370 89 17,626 1,569 64 17,626 1,128 PRIVATE (E2)........ 2 18,629 37 20 18,629 373 10 18,629 186 PRIVATE (E1)........ 0 15,499 0 6 15,499 93 7 15,499 108 TOTAL BAH WITH DEPENDENTS....... 2,070 $ 43,006 4,277 $ 86,867 3,725 $ 77,212 BAH WITHOUT DEPENDENTS SERGEANT MAJOR...... 138 $ 19,866 $ 2,742 72 $ 19,866 $ 1,430 80 $ 19,866 $ 1,589 1ST SGT/MASTER SGT.. 515 18,896 9,731 295 18,896 5,574 270 18,896 5,102 PLTN SGT/SFC........ 1,515 18,384 27,852 933 18,384 17,152 822 18,384 15,112 STAFF SERGEANT...... 2,357 16,539 38,982 1,413 16,539 23,370 1,292 16,539 21,368 SERGEANT............ 2,780 16,624 46,215 1,891 16,624 31,436 1,398 16,624 23,240 CORPORAL/SPC4....... 793 15,051 11,935 520 15,051 7,827 383 15,051 5,765 PRIVATE, 1ST CL..... 84 14,763 1,240 60 14,763 886 53 14,763 782 PRIVATE (E2)........ 17 14,982 255 13 14,982 195 9 14,982 135 PRIVATE (E1)........ 3 13,665 41 6 13,665 82 6 13,665 82 TOTAL BAH WITHOUT DEPENDENTS.... 8,202 $ 138,993 5,203 $ 87,952 4,313 $ 73,175 TOTAL BASIC ALLOWANCE FOR HOUSING - OVERSEAS 10,272 $ 181,999 9,480 $ 174,819 8,038 $ 150,387 TOTAL ENLISTED BASIC ALLOWANCE FOR HOUSING........... 891,266 $ 3,796,680 400,284 $ 3,122,568 320,409 $ 2,524,779

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Project: Station Allowance Overseas - Enlisted

Part I - Purpose and Scope The funds requested will provide payment of a per diem allowance to enlisted personnel on duty outside the United States considering all elements of the cost of living, subsistence and other necessary incidental expenses as prescribed by joint travel regulations and authorized under provisions of 37 U.S.C. 405.

Part II - Justification of Funds Requested Overseas Station Allowance payments are determined by multiplying the projected number of personnel eligible for each type of allowance by the estimated average rate applicable. Fluctuations in currency exchange rates have a direct impact on Overseas Station Allowance. This has been especially true in the case of Germany. The estimates for overseas station allowances are based on rates of exchange of €0.8530 Euro/$1 US. The FY 2007 military pay raise reflects a 2.2% across-the-board increase with selective increases for certain mid-grade senior enlisted personnel effective 1 April 2007. The net change in the overseas station allowance requirements decreased by -$24.8 million between FY 2006 and FY 2007. These changes are based on –

(1) Annualization of the 1 Jan 2006, 3.1% pay-raise: $2.1 million. (2) The 1 Jan 2007, 2.2 percent pay raise: +$5.0 million. (3) Decrease in original number: -$25.6 million (4) Rate change amount: -$0.8 million.


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ENLISTED OVERSEAS STATION ALLOWANCE (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT COST OF LIVING SGM.......................... 390 $ 10,331 $ 4,029 1,045 $ 5,097 $ 5,326 733 $ 5,676 $ 4,161 1ST SGT/MASTER SGT........... 2,412 9,108 21,968 3,512 4,660 16,366 2,456 5,007 12,297 PLTN SGT/SFC................. 8,691 8,352 72,587 9,594 4,424 42,444 8,400 4,612 38,741 SSG.......................... 6,882 6,777 46,639 15,778 3,671 57,921 14,446 3,741 54,042 SGT.......................... 11,195 5,347 59,860 23,522 2,933 68,990 22,016 2,949 64,925 CORPORAL/SPC4................ 34,989 3,791 132,643 36,236 2,162 78,342 34,444 2,085 71,816 PRIVATE, 1ST CL.............. 28,939 2,801 81,058 18,050 1,360 24,548 15,690 1,540 24,163 PV2.......................... 9,383 2,535 23,786 5,868 1,053 6,179 3,931 1,395 5,484 PV1.......................... 1,702 2,508 4,269 3,061 1,045 3,199 1,519 1,379 2,095 SUBTOTAL.................... 104,583 $ 446,839 116,666 $ 303,315 103,635 $ 277,724 TEMPORARY LODGING ALLOWANCE.... 111,774 $ 561 $ 62,705 38,821 $ 569 $ 22,089 39,485 $ 579 $ 22,862 TOTAL ENLISTED STATION ALLOWANCE OVERSEAS.. 216,357 $ 509,544 155,487 $ 325,404 143,120 $ 300,586

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Project: CONUS Cost of Living Allowance - Enlisted

Part I - Purpose and Scope The funds requested will provide payment of a cost of living allowance (COLA) to soldiers who are assigned to high cost areas in the continental United States (CONUS). A high cost area is defined as a locality where the cost of living exceeds the average cost of living in CONUS by an established threshold percentage during a base period. The threshold percentage is established by the Secretary of Defense but cannot be less than eight percent. The current established threshold is 108 percent of the national cost of living average. The amount of COLA payable is the product of spendable income (based on regular military compensation level) multiplied by the difference between the COLA index for the individual’s high cost area and the threshold percentage. The FY 1995 DoD Authorization Act authorized the allowance.

Part II - Justification of Funds Requested CONUS COLA payments are determined by multiplying the projected number of personnel eligible by an estimated rate. From FY 2006 and FY 2007 the CONUS COLA requirement decreased by -$3.9 million based on decreased number of programmatic requirements. Detailed cost computations are provided by the following table:

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ENLISTED CONUS COST OF LIVING ALLOWANCE (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT CONUS COLA......... 36,686 $ 1,485 $ 54,479 16,990 $ 1,485 $ 25,230 14,392 $ 1,485 $ 21,372

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ESTIMATE FY 2007 302,822 ESTIMATE FY 2006 355,152 ACTUAL FY 2005 258,153

Project: Clothing Allowances - Enlisted

Part I - Purpose and Scope The funds requested will provide for payment to enlisted personnel for prescribed clothing authorized by the Secretary of Defense under the provisions of 37 U.S.C. 418 including:

(1) Initial Clothing Allowance when authorized by competent orders. (2) For cash payment of the Clothing Basic Maintenance Allowance authorized from the

sixth month of entrance on duty through the thirty-sixth month and/or cash payment of the Standard Maintenance Allowance authorized from the thirty-seventh month through the completion of the enlistment.

(3) For cost of Issue-In-Kind in areas where clothing maintenance allowance is not

authorized. (4) Supplementary Clothing Allowances for personnel assigned to special organizations or

details where the nature of the duties to be performed requires additional items of individual clothing not required for the majority of enlisted personnel.

Part II - Justification of Funds Requested The net change in the enlisted clothing allowance or in-kind issue requirement decreased by -$52.3 million between FY 2006 and FY 2007.

(1) Initial Allowance increased by +$2.8 million. (2) Maintenance Allowance decreased by -$39.9 million. (3) Supplementary allowance decreased by $-15.6 million. (4) Issue-in-kind increased by $+.4 million.


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ENLISTED CLOTHING ALLOWANCES ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT CLOTHING - INITIAL ALLOWANCE INITIAL ALLOWANCE MILITARY CLOTHING MALE...................... 50,282 1,219.69 $ 61,328 56,799 1,283.49 $ 72,901 57,353 1,309.25 $ 75,089 FEMALE.................... 10,448 1,486.79 $ 15,534 14,200 1,551.49 $ 22,031 14,338 1,582.61 $ 22,691 ARMY RESERVE W/PARTIAL CLOTHING ALLOWANCE........ 75 567.19 43 75 487.14 37 75 496.91 37 NATIONAL GUARD WITH PARTIAL CLOTHING ALLOWANCE................. 65 557.59 36 65 490.49 32 65 500.30 33 LESS SAVINGS ON DEFERRED CLOTHING ISSUE............ (1,435) (3,843) (3,958) ADVANCE FUNDING FOR NEW CLOTHING ITEMS............ 0 0 0 LIQUIDATION OF PRIOR YEAR ADVANCES............. 0 0 0 TOTAL MILITARY CLOTHING......... 75,506 91,158 93,892 CIVILIAN CLOTHING........... 3,584 853.00 3,057 3,092 862.35 2,666 3,087 879.60 2,715 TOTAL INITIAL ALLOWANCE..... 78,563 93,824 96,607

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ENLISTED CLOTHING ALLOWANCES ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT CLOTHING - MAINTENANCE ALLOWANCE BASIC MAINTENANCE ( PERSONNEL WITH 7-36 MONTHS SERVICE ) MALE.................... 155,121 330 51,164 174,956 356 62,354 147,006 364 53,493 FEMALE.................. 34,028 388 13,219 32,600 418 13,614 29,943 426 12,767 TOTAL................. 64,383 75,968 66,260 STANDARD MAINTENANCE ( PERSONNEL WITH 37 MONTHS OR MORE OF SERVICE ) MALE..................... 195,214 440.20 85,933 256,945 511.20 131,350 196,420 521.94 102,519 FEMALE.................. 33,235 485.00 16,119 40,283 594.00 23,928 37,238 606.47 22,584 TOTAL................. 102,052 155,278 125,103 TOTAL MAINTENANCE ALLOWANCES.... 166,435 231,246 191,363 SUPPLEMENTARY ALLOWANCES.. 11,017 25,479 9,897 OTHER ISS.-IN-KIND-KATUSA..... 314 930.52 292 7,709 467.68 3,605 7,858 477.03 3,749 REPLACEMENT DURING FIRST SIX MONTHS...... 60,730 30.40 1,846 70,999 10.83 769 71,691 11.05 792 CHARGE SALES............ 0 229 414 TOTAL................. 2,138 4,603 4,955 TOTAL CLOTHING ALLOWANCES....... 258,153 355,152 302,822 LESS REIMBURSABLE OBLIGATIONS............. 0 168 217 TOTAL DIRECT ENLISTED CLOTHING OBLIGATIONS...... 258,153 354,984 302,605

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Project: Family Separation Allowances - Enlisted

Part I - Purpose and Scope The funds requested are to provide for family separation allowance (FSA) payments to enlisted personnel with dependents on duty outside the United States or in Alaska for added separation expenses under two circumstances: (1) Travel of dependents to overseas duty station is not authorized and the member maintains two homes, one in CONUS for the member’s family and one overseas for the member. Payment is made at the monthly quarter’s allowance rate authorized for a member of the same grade without dependents. (2) When a member with dependents makes a permanent change of station (PCS) or is on temporary duty (TDY) travel, or on board ship for thirty days or more either in CONUS or overseas and the travel of dependents to the member’s duty station is not authorized and dependents do not reside at or near duty station. The payment is $250 per month for both FSA-PCS and FSA-TDY (37 U.S.C. 427).

Part II - Justification of Funds Requested The estimated number of payments is based on historical performance and programmed requirements for overseas stationing. Allowances for family separation payments are determined by multiplying the estimated number of personnel for each type of family separation allowance by the applicable statutory rate. The net change in the family separation allowance requirement decreased by -$11.8 million between FY 2006 and FY 2007. These changes are based on –

(1) FSA-I decreased by -$1.7 million due to a change in the numbers of families receiving separation payments.

(2) FSA-II (PCS) decreased by -$5.5 million. (3) FSA-II (TDY) decreased by $-4.5 million.


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ENLISTED FAMILY SEPARATION ALLOWANCE (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT PCS OVERSEAS WITH DEPENDENTS NOT AUTHORIZED AND MAINTAINS TWO HOMES SGM.......................... 0 $ 7,898 $ 0 43 $ 8,221 $ 354 25 $ 8,549 $ 214 1SG/MSG...................... 0 7,252 0 201 7,549 1,517 145 7,851 1,138 PSG/SFC...................... 0 6,191 0 543 6,445 3,500 491 6,702 3,291 SSG.......................... 0 5,603 0 797 5,833 4,649 619 6,066 3,755 SGT.......................... 0 5,169 0 513 5,380 2,760 487 5,596 2,725 CPL/SPC...................... 0 4,496 0 32 4,679 150 22 4,867 107 SUBTOTAL.................... 0 0 2,129 12,930 1,789 11,230 PCS CONUS OR OVERSEAS WITH DEPENDENTS NOT AUTHORIZED...... 15,605 3,000 46,815 14,347 3,000 43,041 12,499 3,000 37,497 TDY CONUS OR OVERSEAS FOR MORE THAN 30 DAYS WITH DEPENDENTS NOT RESIDING NEAR TDY STATION............... 98,168 3,000 294,504 11,523 3,000 34,569 10,021 3,000 30,063 TOTAL ENLISTED FAMILY SEPARATION ALLOWANCES.......... 113,773 $ 341,319 27,999 $ 90,540 24,309 $ 78,790

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Project: Separation Payments - Enlisted

Part I - Purpose and Scope Accrued Leave Payments - members are authorized 30 days of ordinary leave annually. They may accumulate a maximum of no more than 120 days unused leave at the beginning of any fiscal year. Upon retirement or separation, members are paid for unused accrued leave at the rate of basic pay to which entitled at time of release. Effective 10 February 76, a member cannot be paid for more than 60 days of accrued leave during his military career. This limitation does not include payments for accrued leave made before that date. Severance Pay - Disability - Disability Severance Pay is authorized to members on active duty who are discharged because of physical disability and who have less than 20 years of service and less than 30 percent disability. Severance Pay - Non Disability - Commencing in FY 1991, non-disability severance pay is authorized to members on active duty who are involuntarily separated from service, are not eligible for retirement pay, and meet minimum time-in-service requirements. The FY 1992 National Defense Authorization Act approved two voluntary separation pay programs to use during the force drawdown. The programs apply to both officers and enlisted soldiers who have more than six and less than 20 years of service. The first, voluntary separation incentive (VSI) is an annuity that makes annual payments for twice the number of years served for soldiers who voluntarily leave active duty. The second program, special separation benefits (SSB), provides a lump sum of one and a half times involuntary separation pay (50% more) for soldiers who voluntarily leave active duty. VSI and SSB have been used to reduce involuntary separations. The authority to use VSI/SSB was extended from 30 Sep 1990 to 30 Sep 2001 by the FY 1999 National Defense Authorization Act. However, the Army will reach its steady state end strength at the end of FY 1999 and will not offer VSI and SSB to any new takers after FY 1999. The FY 1993 National Defense Authorization Act approved an active duty early retirement program for use during the force drawdown. The early retirement program has been used to shape the 15-20 year segment of the force. It has assisted the Army in achieving its drawdown goals of maintaining readiness and treating people fairly. Soldiers separated under the early retirement program receive the same benefits as individuals with 20 or more years of service. However, their retired pay is reduced by one percent for each year that they are short of 20 years of active duty. The early retirement amount is the product of 2.5 percent times years of service times basic pay times reduction factor. For the enlisted personnel who leave under the early retirement program, the Army is required to establish a sub account within the Military Personnel Appropriation to fund all early retirement payments up front in the Military Personnel Appropriation to cover the entire initial period, which is defined as that period equal to the difference between 20 years and the number of years completed by the member. The authority to use the early retirement program was extended from 1 Oct 1999 to 1 Oct 2001 by the FY 1999

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National Defense Authorization Act. However, the Army having reached steady state end strength at the end of FY 1999 and has not offered early retirement to any new takers since FY 1999. The FY 2005 National Defense Authorization Act (NDAA), Section 641, Subsection (c) of Section 1407 of Title 10, United States Code, requires the computation of high-36 month average retirement pay for reserve component members, retired for disability while on active duty or dying while on active duty, to be similar to the active component.

Part II - Justification of Funds Requested Severance payments are determined by multiplying the projected number eligible for each type of payment by the estimated average payment applicable. Accumulated leave payments are made based upon leave accrued as of 1 September 76. For leave accumulated prior to 1 September 76, and retained throughout the career, payments include basic pay, $1.25 per day quarters allowance to members in pay grade E-5 to E-9 with dependents, and 70 cents per day to all members for subsistence. For leave accumulated after 1 September 76, to include lowering of leave balances prior to 1 September 76, the rate payable is basic pay only. Leave payments will not exceed a career total of 60 days. Severance pay for disability is computed at two months basic pay of grade held at time of discharge multiplied by the number of years active service, but not more than 12. The SSB amount is from the annual base pay times 15 percent times years of service. The VSI (annuity) is a product of annual base pay times 2.5 percent times years of service and is paid for twice the number of years served, without any cost of living adjustments. Donations are computed by multiplying the programmed number of releases from confinement and the number discharged for fraudulent enlistments by $25.00. The National Defense Authorization Act for FY 1992 and FY 1993 required the establishment of a VSI Fund effective 1 January 93 from which VSI payments will be made. The act further required the board of actuaries to determine: (1) the amount necessary to liquidate the original unfunded liability, i.e., those personnel accepting VSI benefits prior to 1 January 93 and (2) the total present value costs necessary to fund those members accepting VSI benefits after 1 January 93. The FY 2000 Authorization Act provides for a system that will give the soldier the option to retire under the pre-1986 military retirement system or accept a one-time $30,000 lump sum payment and remain under the Redux retirement plan. The lump sum payments began being paid from the Military Personnel appropriation in FY 2001 and full implementation of the program is reflected in the budget from FY 2002 into the future. The FY 2000 Authorization Act provides for special compensation for uniformed service retirees who completed a minimum 20 years of creditable service for computing the amount of retired pay, and also had incurred a qualifying combat related disability. A qualifying disability includes a war related service disability rated at a minimum 60 percent, or a minimum 10 percent disability for which they received a Purple Heart. The amount of the compensation is equal to the veterans’ disability compensation based solely on the combat related disability. The FY 2005 National Defense Authorization Act (NDAA) provides for a member of a reserve component who is entitled to retired pay, the member’s high-three average is computed in the same manner for an active duty member entitled to retired pay.

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The FY 2007 military pay raise reflects a 2.2% across-the-board increase with selective increases for certain mid-grade senior enlisted personnel effective 1 April 2007. The requirement for separation pay changes by -$13.2 million between FY 2006 and FY 2007 is based on-

(1) Annualization of the 3.1%, 1 Jan 2006: +$1.5 million. (2) The 1 Jan 2007, 2.2 percent pay raise: +$4.3 million. (3) Decrease in the numbers of soldiers receiving Separation Pay: -$23.8 million. (4) Rate change: +$4.8 million.


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ENLISTED SEPARATION PAYMENTS (AMOUNT IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVG AVG AVG NUMBER DAYS RATE AMOUNT NUMBER DAYS RATE AMOUNT NUMBER DAYS RATE AMOUNT LUMP SUM TERMINAL LEAVE PAYMENTS SERGEANT MAJOR....................... 613 10.2 $ 1,724 $ 1,057 306 10.2 $ 1,748 $ 535 172 10.2 $ 1,755 $ 302 1ST SERGEANT/MASTER SERGEANT......... 2,227 12.2 1,655 3,686 471 12.2 1,679 791 221 12.2 1,697 375 PLATOON SERGEANT/SERGEANT 1ST CLASS.. 5,211 16.3 1,878 9,785 5,051 16.3 1,888 9,536 4,551 16.3 1,912 8,701 STAFF SERGEANT....................... 5,081 19.3 1,792 9,105 13,727 19.3 1,801 24,716 10,527 19.3 1,824 19,199 SERGEANT............................. 14,749 17.3 1,292 19,060 3,357 17.3 1,295 4,347 2,857 17.3 1,303 3,723 CORPRAL/SPECIALIST 4................. 28,193 17.2 1,041 29,340 40,907 17.2 1,048 42,851 37,707 17.2 1,057 39,870 PRIVATE, FIRST CLASS................. 8,096 17.2 851 6,887 3,515 17.2 864 3,036 3,015 17.2 875 2,638 PRIVATE (E2)......................... 6,691 16.6 740 4,952 4,431 16.6 748 3,312 3,852 16.6 752 2,896 PRIVATE (E1)......................... 10,725 20.6 732 7,846 8,801 20.6 757 6,658 5,823 20.6 780 4,543 SUBTOTAL........................... 81,586 $ 91,718 80,566 $ 95,782 68,725 $ 82,247 SEVERANCE PAY (DISABILITY)............ 5,865 $ 19,935 $ 116,919 4,517 $ 20,575 $ 92,937 4,065 $ 21,265 $ 86,442 AUTHORIZED DONATIONS.................. 0 0 0 0 0 0 0 0 0 INVOLUNTARY HALF-PAY(5%).............. 1,491 12,083 18,016 597 12,472 7,446 793 12,889 10,221 INVOLUNTARY FULL-PAY(10%)............. 560 25,921 14,516 579 26,756 15,492 631 27,651 17,448 SPECIAL SEPARATION BENEFIT(15%)....... 0 0 0 0 0 0 0 0 0 15 YEAR RETIREMENT.................... 0 0 0 0 0 0 0 0 0 SUBTOTAL SEPARATION PAY (NON-DISABILITY)..................... 2,051 $ 32,532 1,176 $ 22,938 1,424 $ 27,669 VOLUNTARY SEPARATION INCENTIVE (DIRECT MILPERS PAYMENTS) 1)......... 0 $ 13,152 0 $ 5,703 0 $ 5,760 THRU DEC 31, 1992.................. 13,152 5,703 5,760 JAN 1, 1993 AND AFTER.............. 0 0 0 0 0 0 $30,000 LUMP SUM BONUS................ $ 90,600 $ 101,155 $ 103,289 TOTAL ENLISTED SEPARATION PAY......... 89,502 $ 344,921 86,259 $ 318,515 74,214 $ 305,407 1) VSI recipients after 31 Dec 92 - Payments are made from the Military Personnel, Army Appropriation to the VSI Trust Fund.

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(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 804,228 ESTIMATE FY 2006 $ 859,400 ACTUAL FY 2005 $ 1,029,371

Project: Social Security Tax - Employer's Obligation - Enlisted

Part I - Purpose and Scope The funds requested provide for the employer's tax to the Social Security Administration as required by the Federal Insurance Contribution Act (FICA).


The FICA tax is developed by multiplying the total earnings for FICA tax purposes by the applicable percentage. The Old Age, Survivor, and Disability Insurance (OASDI) rate is 6.2 percent and the Hospital Insurance (HI) rate is 1.45 percent. The maximum amount of earnings per individual on which tax is payable are: Calendar year OASDI Base Medicare Base 2005 $90,000 No upper limit 2006 $93,000 No upper limit 2007 $96,600 No upper limit The FY 2007 military pay raise reflects a 2.2% across-the-board increase with selective increases for certain mid-grade senior enlisted personnel effective 1 April 2007. The net change in the FICA requirement is -$55.2 million between FY 2006 and FY 2007. These changes are based on –

(1) Annualization of the 1 Jan 2006, 3.1% pay raise: +$6.2 million. (2) The 1 Jan 2007, 2.2 percent pay raise: +$14.3 million. (3) G.I. Bill Offset change from FY 2006 to FY 2007: +$.4 million (4) Decrease in man-year: -$64.0 million (5) FICA adjustment (longevity): -$12.1million


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ENLISTED SOCIAL SECURITY TAX (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT SOCIAL SECURITY TAX - EMPLOYER'S CONTRIBUTION OF TAX ON BASIC PAY..... 513,671 $ 2,003.95 1,029,371 437,669 $ 1,963.58 $ 859,400 401,998 $ 2,000.58 $ 804,228 LESS NON_JUDICIAL FINES AND FORFEITURES......... $ 0 $ 0 $ 0 TOTAL ENLISTED SOCIAL SECURITY TAX..... 513,671 1,029,371 437,669 $ 859,400 401,998 $ 804,228

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Schedule of Increases and Decreases (Amounts in thousands of dollars) Pay and Allowance of Cadets FY 2006 Direct Program $ 53,392 Increases: Pricing Increases: a. Annualization of pay raise 3.1% 90 b. FY 2007 across-the-board pay raise 2.2%

effective 1 January 2007 980 c. Cost growth for subsistence rate $6.50 to $6.65 242 per day Total Pricing Increases 1,312 Program Increases: a. Dollars associated with number of Cadet increase 830 b. Operational Rations 197 c. Subsistence allowance 87 Total Program Increases 1,114 Total Increases $ 2,426 Decreases: Pricing Decreases: 0 0 0 Total Pricing Decreases 0 Program Decreases: Subsistence Allowance 0 0 Total Program Decreases 0 Total Decreases $ 0 FY 2007 Direct Program $ 55,818

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Project: Academy Cadets

Part I - Purpose and Scope The funds requested provide for basic pay and allowances of Academy Cadets and commuted ration allowance under the provisions of 37 U.S.C. 201, 203, and 422. The budget also includes the employer's share of the Federal Insurance Contribution Act (FICA) tax.


Section 203(c) of Title 37 U.S.C. was amended by Sec 612 of the FY 2001 National Defense Authorization Act. This amendment, effective 1 October 2001, set the basic pay rate of the Cadet to be "at the monthly rate equal to 35 percent of the basic pay of a commissioned officer in the pay grade O-1 with less than two years of service." The funding requirement is determined by applying annual rates to the projected man-years. The cadet funding requirements change by +$2.4 million from FY 2006 to FY 2007 is based on:

(1) Authorized pay raise of 2.2% increase: +$1.3 million. (2) Increased requirement for subsistence: +$.197 million. (3) Operational rations usage change: +$.087 million. (4) Increase in number of cadets: +$.830 million

Note: FY 2005 Actual does not match official financial records. An additional $3.7 million was applied to correct cadet base pay. The pay obligation was posted in error to Operational PCS.


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PAY AND ALLOWANCE OF ACADEMY CADETS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AVERAGE AVERAGE AVERAGE NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT (1) BASIC PAY............................... 4,013 $ 9,701 $ 38,930 4,026 $ 9,991 $ 40,224 4,109 $ 10,233 $ 42,047 (2) SUBSISTENCE - COMMUTED-RATION A. SUBSISTENCE ALLOWANCE................ 4,013 $ 2,318 9,302 4,026 $ 2,376 9,566 4,109 $ 2,435 10,005 B. OPERATIONAL RATIONS.................. 280 534 621 (3) SOCIAL SECURITY TAX - EMPLOYER CONTRIBUTION................... 4,041 $ 742 2,998 4,016 $ 764 3,068 4,016 $ 783 3,145 TOTAL ACADEMY CADETS........................ 4,013 $ 51,510 4,026 $ 53,392 4,109 $ 55,818

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Schedule of Increases and Decreases (Amounts in thousands of dollars) Subsistence of Enlisted Personnel FY 2006 Direct Program $ 1,588,210 Increases: Pricing Increases: a. Basic Allowance Subsistence rates increased (1.9 19,358 percent) due to a change in USDA food cost index. b. Subsistence-in-Mess rates increased for trainees 5,835 and non-trainee Soldiers receiving meals in dining facilities. c. Rates increase for operational rations for MREs, 5,783 for unitized rations, and for other package operational rations. d. Family Subsistence Supplemental Allowance rate 46 increase due to an expected increase in the annual eligibility cost of this benefit. Total Pricing Increases 31,022 Program Increases: Participation in the Basic Allowance for Subsistence 22,468 program increased by 8,470 Soldiers authorized to mess separately. Total Program Increases 22,468 Total Increases $ 53,490 Decreases: Pricing Decreases: Total Pricing Decreases 0 Program Decreases: a. Program decrease caused by an increase in the (145,443) number of Soldiers budgeted to receive subsistence-in-mess in FY06 when Title IX (GWOT) were added. b. Program decrease caused by an increase in the (86,616) number of Soldiers budgeted to receive operational rations (MREs, unitized rations and other package rations) in FY06 when Title IX (GWOT) were added. (2,659) c. Program decrease caused by an increase in the aggregate cost of augmentation rations budgeted in FY06 when Title IX funds (GWOT) were added. d. A decrease in the direct program caused by an (1,345) increase in reimbursables. Total Program Decreases (236,063) Total Decreases $ (236,063) FY 2007 Direct Program $ 1,405,637

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Project: Subsistence of Enlisted Personnel

Part I - Purpose and Scope The funds requested for this budget activity are for the payment of authorized Basic Allowances for Subsistence (BAS) and Subsistence-in-Kind (SIK). Subsistence in this account is for the active duty enlisted Soldier. Subsistence-in-Kind includes the cost of procuring subsistence for garrison dining facilities (Subsistence in Messes), operational rations, and augmentation rations. Funded reimbursements are cash collections from dining facilities made by civilians and by Soldiers who receive Basic Allowance for Subsistence. The 2001 National Defense Authorization Act added a Family Subsistence Supplemental Allowance for members with dependents who are food-stamp eligible and make application for such allowance. Part II - Justification of Funds Requested This budget activity includes the Basic Allowance for Subsistence (BAS) paid to the enlisted Soldier. BAS is paid under the following conditions: (1) when authorized to mess separately, (2) while on authorized leave, and (3) when subsistence-in-kind is not available. All enlisted Soldiers are paid their full BAS entitlement, but Single Soldiers who reside on Army installations with dining facilities have a portion of their BAS collected from their pay and are directed to subsist in Army dining facilities. This budget activity is based on the delegation of authority in Title 10 U.S.C, Chap. (435) Sec. 4651(c). Basic Allowance for Subsistence changed in FY 1998 when the Department of Defense proposed and the Congress enacted reform in the Basic Allowance for Subsistence (BAS) that linked BAS to the Department of Agriculture (DoA) food plan indices. Since FY 2002 rate changes have been tied to the annual USDA food cost index. All enlisted members (except recruits and holdees) will be entitled to BAS. Between FY 2006 AND FY 2007 BAS costs increase $43.8 million. Subsistence-In-Kind (SIK) funds subsistence to feed enlisted Soldiers their daily food rations in accordance with Title 10 U.S.C. This program funds meals provided in garrison dining facilities (subsistence in messes), operational rations, and augmentation rations. In FY 2004 $160,000 and in FY 2005 $260,000 reimbursement for cost of feeding civilians and contractors in OIF/OEF dining facilities was made from Operations and Maintenance, Army accounts. From FY 2006 to FY 2007 the base program for Subsistence-in-Kind costs increased due to inflation; however, the FY 2006 budget shown has been increased by Title IX funds provided early in the fiscal year to provide sufficient resources until supplemental dollars are added to fund the cost of contingency operations. Subsistence-in-Messes is the cost of bulk subsistence for dining facilities. SIK garrison dining facility budget requirements are dependent on the number of personnel using the dining facilities versus the number of SIK Soldiers authorized to subsist without cost (participation

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rate), and the cost of subsistence used in preparing meals (food cost). All CONUS and OCONUS installations have converted to the Subsistence Prime Vendor (SPV) program wherein commercial wholesale food distributors sell and deliver subsistence items directly to each dining facility. These commercial distributors replaced a system of government owned and operated depots. Operational Rations are rations used for field subsistence. Operational rations include the Meal-Ready-to Eat (MRE), Unitized Group Rations (UGR) that include “heat and serve” and A-ration varieties, and other operational rations, such as Cold Weather Rations. SIK funds the cost of operational rations for both officers and enlisted soldiers. The number of active duty Soldiers, the type of operational rations served and the requirements of the training scenarios determine costs for operational rations. Augmentation Rations include contract meals, KATUSA (Korean Augmentation to U.S. Army) rations and Host Nation support meals. Contract meals are furnished by commercial facilities when the payment of BAS would create an individual hardship and/or the costs for establishing a government mess facility are prohibitive. The number of authorized recipients, the type of augmentation ration served, and the quantity requirements determine costs for augmentation rations. Family Subsistence Supplemental Allowance (FSSA), pursuant to Section 402a of Title 37, United States Code, began 1 May 2001. The program is designed to provide members who are eligible for food stamps a supplemental allowance not to exceed $500 a month. A members may be eligible if his total household income, including the member’s BAH entitlement (even if the member is in quarters) is less than the food-stamp income eligibility ceiling, as defined by the U. S. Department of Agriculture. When a member is in a non-pay status for any reason, the member is not eligible for FSSA during that non-pay period. The FSSA is voluntary, and the member must reapply whenever he experiences a significant change in household income or number of people living in the household. Between FY 2006 and FY 2007 the subsistence program has decreased $182.6 million, primarily due to the $254 million FY 2006 Title IX funding/requirements that is not included in the FY 2007 baseline budget.

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ENLISTED BASIC ALLOWANCE FOR SUBSISTENCE (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT A. BASIC ALLOWANCE FOR SUBSISTENCE 1. WHEN AUTH TO MESS SEP....... 434,880 $ 3,168 $ 1,377,701 304,870 $ 3,252 $ 991,393 313,340 $ 3,314 $ 1,038,292 2. WHEN RATIONS IN KIND NOT AVAILABLE...... 6,533 $ 3,221 $ 21,042 0 $ 3,055 $ 0 0 $ 3,058 $ 0 3. AUGMENTATION OF COMMUTED RATION ALLOW FOR MEALS TAKEN SEP...... 0 $ 0 $ 0 0 $ 0 $ 0 0 $ 0 $ 0 4. LESS COLLNS......... 43,657 $ 2,705 $ 118,093 65,072 $ 2,759 $ 179,534 64,940 $ 2,813 $ 182,675 TOTAL ENLISTED BAS............... 441,413 $ 1,280,650 304,870 $ 811,859 313,340 $ 855,617 B. SUBSISTENCE- IN-KIND 1. SUB-IN-MESS A. TRAINEE/ NP STATUS... 37,326 $ 2,697 $ 100,667 37,370 $ 2,763 $ 103,248 37,346 $ 2,834 $ 105,829 B. MEM TAKING MEALS IN MESS.. 305,637 $ 2,953 $ 902,621 101,822 $ 3,042 $ 309,743 53,046 $ 3,102 $ 164,523 C. REIMB...... $ 24,440 $ 34,463 $ 35,808 SUBTOTAL SUB-IN-MESS.... 342,963 $ 1,027,728 139,192 $ 447,454 90,392 $ 306,160 2. OP RATIONS A. MREs........ 59,013 $ 7,628 $ 450,171 25,130 $ 7,819 $ 196,498 18,277 $ 8,015 $ 146,489 B. UNITIZED RATIONS..... 38,661 $ 4,222 $ 163,226 26,550 $ 4,328 $ 114,897 19,309 $ 4,436 $ 85,656 C. OTHER PACKAGE OP RATIONS.. 1,698 $ 8,391 $ 14,252 723 $ 8,600 $ 6,221 526 $ 8,821 $ 4,638 D. REIMB...... $ 0 $ 0 $ 0 SUBTOTAL OP RATS........ $ 627,649 $ 317,616 $ 236,783 3. AUG RATS/ OTHER PROG A. AUG RATS.... $ 10,366 $ 10,547 $ 9,815 B. OTHER - REGION......... $ 27,271 $ 27,749 $ 25,822 C. OTHER - MESSING........ $ 4,182 $ 4,255 $ 3,960 SUBTOTAL AUG RATS/ OTHER PROG..... $ 41,819 $ 42,551 $ 39,597 TOTAL SIK......... $ 1,697,196 $ 807,621 $ 582,540 C. FAMILY SUB SUP ALLOW (FSSA) TOTAL FSSA........ 398 $ 2,332 $ 928 1,332 $ 2,398 $ 3,193 1,332 $ 2,468 $ 3,288 TOTAL SUBSISTENCE PROGRAM.............. $ 2,978,774 $ 1,622,673 $ 1,441,445 LESS REIMBURSABLES........ $ 24,440 $ 34,463 $ 35,808 TOTAL DIRECT SUBSISTENCE.......... $ 2,954,334 $ 1,588,210 $ 1,405,637

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Schedule of Increases and Decreases (Amounts in thousands of dollars) Permanent Change of Station Travel FY 2006 Direct Program $ 1,223,215 Increases: Pricing Increases: a. Annualization of Dislocation Allowance (DLA) FY 264 2006 3.1% pay raise effective 1 Jan 2006. b. Dislocation Allowance (DLA) FY 2007 2.2% new pay 680 raise effective 1 Jan 2007. c. Household Goods - Land/Sea rate change (2.2%). 8,231 d. Port Handling rate change (2.2%). 118 e. POV rate increase change (2.2%). 1,094 f. Temporary Lodging Expense rate change (2.2%). 1,843 g. Non-Temporary Storage rate change (2.2%). 642 h. Member Mileage rate change. 14,117 Total Pricing Increases 26,989 Program Increases: . POV Port/Sealift allowances increase in personnel 17,091 receiving. Total Program Increases 17,091 Total Increases $ 44,080 Decreases: Pricing Decreases: Total Pricing Decreases 0 Program Decreases: a. Member Travel decrease in number of moves. (105,868) b. Dependent Travel decrease in number of moves. (63,331) c. Dislocation Allowance decrease in the number of (47,406) personnel receiving. d. Household Goods - Land/Sea decrease in number of moves. (49,647) e. Temporary Lodging Expense decrease in the number (4,418) receiving. f. Reimbursable increase reduces direct program. (46) Total Program Decreases (270,716) Total Decreases $ (270,716) FY 2007 Direct Program $ 996,579

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PCS - SUMMARY OF MOVE REQUIREMENTS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER AMOUNT NUMBER AMOUNT NUMBER AMOUNT ACCESSION TRAVEL.......................... 76,427 $ 94,344 86,736 $ 205,707 87,964 $ 203,641 TRAINING TRAVEL........................... 8,738 75,676 4,184 36,541 6,048 53,366 OPERATIONAL TRAVEL BETWEEN DUTY STATIONS.. 34,254 274,132 32,822 281,395 14,378 138,488 ROTATIONAL TRAVEL TO AND FROM OVERSEAS.... 55,510 383,310 76,875 457,404 51,885 361,210 SEPARATION TRAVEL......................... 87,538 127,755 85,111 170,685 86,831 173,210 TRAVEL OF ORGANIZED UNITS................. 7,090 15,011 3,881 9,759 1,043 3,709 NON-TEMPORARY STORAGE..................... 23,955 40,829 42,121 TEMPORARY LODGING EXPENSE................. 30,856 23,068 23,053 TOTAL OBLIGATIONS....................... 269,557 $ 1,025,039 289,609 $ 1,225,388 248,149 $ 998,798 LESS: REIMBURSABLES..................... $ 2,129 $ 2,173 $ 2,219 TOTAL DIRECT.............................. 269,557 $ 1,022,910 289,609 $ 1,223,215 248,149 $ 996,579

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PCS - SUMMARY OF REQUIREMENTS BY TYPES OF COST (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER AMOUNT NUMBER AMOUNT NUMBER AMOUNT TRAVEL OF MILITARY MEMBER MILEAGE AND PER DIEM.................... 269,557 $ 314,839 289,609 $ 416,171 248,149 $ 320,657 AMC..................................... 698 601 1,713 1,437 964 831 COMMERCIAL AIR.......................... 86,593 71,145 86,675 74,589 87,621 79,046 TRAVEL OF DEPENDENTS MILEAGE AND PER DIEM.................... 164,767 119,616 110,529 100,782 65,119 37,323 AMC..................................... 39 31 203 185 402 380 COMMERCIAL AIR.......................... 16,058 11,166 20,621 22,628 17,936 19,446 TRANSPORTATION OF HHG LAND SHIPMENT........................... 90,530 287,025 199,468 423,751 145,226 382,337 ITGBL SHIPMENT.......................... 417 319 952 776 1,175 1,115 DISLOCATION ALLOWANCE..................... 154,179 124,486 77,082 82,370 34,391 35,909 TRAILER ALLOWANCE......................... 754 437 650 386 583 354 TRANSPORTATION OF POVS.................... 13,310 40,510 11,264 35,004 16,764 53,188 PORT HANDLING (HHG)....................... 323 53 32,045 3,412 26,190 3,038 NON-TEMPORARY STORAGE..................... 23,955 40,829 42,121 TEMP LODGING EXPENSE...................... 30,856 23,068 23,053 TOTAL OBLIGATIONS....................... $ 1,025,039 $ 1,225,388 $ 998,798 LESS: REIMBURSABLE...................... $ 2,129 $ 2,173 $ 2,219 TOTAL DIRECT.............................. $ 1,022,910 $ 1,223,215 $ 996,579

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Project: Permanent Change of Station Travel

Part I - Purpose and Scope of Work

To improve unit cohesion and readiness, while reducing turbulence in units and uncertainty for families, the Army is changing how we man our units. Our objective is to keep Soldiers and leaders in units longer to reduce high turnover rates, to improve cohesion within units, and to increase training proficiency and overall combat readiness. Units that stay together longer function as a team better, understand their duties and their equipment better, require less periodic retraining, and tend to perform better during deployments. This budget includes funding for increased moves due to Integrated Global Presence and Basing Strategy (IGPBS). The assignment policy, now being implemented, will improve quality of life and increase predictability for Soldiers, families and civilian employers. Stabilizing Soldiers will allow families to build deeper roots within their communities and to enjoy more opportunities for spouse employment, continuity of healthcare, schooling and other benefits. This program also reduces the chance of a Soldier moving from a unit that recently redeployed to a unit preparing to deploy. The Army gains more cohesive, more experienced units; Soldiers and families gain stability and access to stronger support networks, which will enhance well-being. The funds requested are for expenses incident to Permanent Change of Station (PCS) travel of military personnel. The total requirement is a function of number of moves, entitlements, and rates. Entitlements for PCS include:

• Mileage and monetary allowances in lieu of transportation for members and dependents • Transportation by common carrier to include military airlift for members and

dependents. • Transportation of Household Goods (HHG) and baggage by common carrier, AMC, and SDDC.

Examples include cost of packing, crating, handling, and temporary storage. • Transportation and storage in lieu of transportation of Privately Owned Vehicles. • Port handling charges for HHG, baggage, and POVs. • Transportation of trailers. • Non-temporary storage of HHG and POVs. • Dislocation Allowances. • Temporary Lodging Expenses. • Pet Quarantine Fees.

The total number of moves is driven by the commitment to station 25 percent of the force overseas and by mandated end strength. All personnel overseas serve prescribed tour lengths as

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directed by Senate Report 99-176, 1986 DOD Appropriation Bill and House of Representatives Report 99-81, Authorization Bill. Congressional language in these reports establishes 36 month accompanied and 24 month unaccompanied tour lengths unless assigned duty area is designated a hardship area by the Service Secretary.

• The overseas rotational moves account for 18 percent of the Army’s total moves program and 37 percent of total PCS costs.

• Accessions and Separations moves comprise 73 percent of total moves and 43 percent of the dollar requirement.

• The remaining move/dollar requirements consist of Operational, Training and Unit moves which equal 9 percent of total moves and 20 percent of dollar requirements. These moves are essential to maintain requisite levels of training, force readiness, quality of life, unit integrity, and support Base Realignment and Closure actions.

Note: FY 2005 Actual does not match official financial records. A decrease of $3.7 million was applied to this account to offset correction to cadet’s base pay. The cadet pay obligation was posted in error to the Operational PCS account.


The FY 2007 budget estimate decreased by -$226.6 million from FY 2006 to FY 2007 is based on:

1) Decrease in the number of moves yields a -$270.7 million decrease, which includes $133.6 million decrease associated with moves funded in FY 2006 Title IX that are not included in the FY 2007 baseline budget.

2) 2.2% inflation rate generates costs of +$26.0 million. 3) Authorized pay raise of 2.2% across-the-board with selective increases for certain

warrant officers and mid-grade senior enlisted personnel effective 1 April 2007 increases Dislocation Allowance costs by +$0.9 million.

4) POV Shipment program increases +$17.1 million.

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Project: Accession Travel

Part I - Purpose and Scope Officers. This program element addresses PCS movements of: (1) officers appointed to a commissioned grade from civilian life, military academies, Reserve Officer Training Corps, and Army Reserve and National Guard officers called or recalled to extended duty from home or place where orders were received to first permanent duty station or training school of 20 weeks or more duration; and (2) new permanent duty station or training school. Also included are officers appointed from enlisted status upon graduation from Officer Candidate School. This category also includes travel to/from schools less than 20 weeks in duration when they precede completion of travel to the new permanent duty station or training school in excess of 20 weeks. Enlisted. This program element addresses PCS movements of: (1) enlistees and prior service personnel from recruiting station or place of enlistment to their first permanent duty station or training school of 20 weeks or more duration; and (2) recalled enlisted reservists from home to first permanent duty station or training school of 20 weeks or more duration. Also includes travel to/from schools less than 20 weeks when they precede completion of travel to the new permanent duty station or training school in excess of 20 weeks. Cadets. This program element funds PCS movements of: (1) individuals selected as academy cadets upon entry into the academy; and (2) individuals who travel to the academies but fail to pass the entrance physical examinations and are required to return home.

Part II - Justification of Funds Requested Accession estimates are based upon the officer, enlisted, and cadet gains necessary to meet the Army's planned manpower levels through FY 2007. Changes to this program can only be accommodated through adjustments in officer, enlisted or cadet strengths. Changes in move numbers between fiscal years reflect adjustments required to meet the Army’s projected end strengths. The following table provides detailed cost computations:

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PCS ACCESSION TRAVEL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT OFFICER MEMBER MILEAGE AND PER DIEM.. 7,294 $ 1,402 $ 10,227 8,079 $ 1,432 $ 11,565 8,042 $ 1,460 $ 11,743 DEPENDENT MILEAGE............ 897 701 629 2,174 716 1,556 2,678 730 1,955 DISLOCATION ALLOWANCE........ 1,428 1,818 2,596 1,555 1,874 2,914 1,560 1,925 3,003 HHG-LAND SHIPMENT............ 1,127 4,753 5,357 6,155 4,872 29,987 5,809 4,979 28,924 TRAILER ALLOWANCE............ 10 580 6 44 594 26 3 607 2 LAND RATE.................. $ 18,815 $ 46,048 $ 45,627 MEMBER-AMC................... 53 $ 800 $ 42 9 $ 800 $ 7 56 $ 800 $ 45 MEMBER-COMM AIR.............. 685 1,464 1,003 1,607 1,501 2,412 1,552 1,534 2,381 DEPENDENT-AMC................ 3 800 2 11 800 9 1 800 1 DEPENDENT-COMM AIR........... 13 1,464 19 684 1,501 1,027 670 1,534 1,028 HHG-ITGBL.................... 10 5,249 52 19 5,380 102 22 5,499 121 HHG-PORT HANDLING............ 0 270 0 396 275 109 370 281 104 POV.......................... 244 3,044 743 589 3,108 1,830 755 3,173 2,395 OVERWATER RATE............. $ 1,861 $ 5,496 $ 6,075 TOTAL OFFICER................ $ 20,676 $ 51,544 $ 51,702 TOTAL CADETS................... 1,233 $ 304 $ 375 1,160 $ 179 $ 208 1,162 $ 184 $ 214 TOTAL OFFICER AND CADETS....... $ 21,051 $ 51,752 $ 51,916

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PCS ACCESSION TRAVEL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT ENLISTED MEMBER MILEAGE AND PER DIEM.. 67,900 $ 450 $ 30,555 77,497 $ 459 $ 35,606 78,760 $ 469 $ 36,910 DEPENDENT MILEAGE............ 17,382 225 3,911 18,826 230 4,325 20,361 234 4,771 DISLOCATION ALLOWANCE........ 14,173 657 9,317 9,877 678 6,694 12,546 696 8,733 HHG-LAND SHIPMENT............ 12,662 743 9,404 100,380 761 76,413 45,719 778 35,569 TRAILER ALLOWANCE............ 392 580 227 385 594 229 394 607 239 LAND RATE.................. $ 53,414 $ 123,267 $ 86,222 MEMBER-AMC................... 8 $ 800 $ 6 23 $ 800 $ 18 276 $ 800 $ 221 MEMBER-COMM AIR.............. 12,233 854 10,453 15,477 876 13,555 27,291 895 24,428 DEPENDENT-AMC................ 5 800 4 23 800 18 25 800 20 DEPENDENT-COMM AIR........... 624 854 533 2,465 876 2,159 3,832 895 3,430 HHG-ITGBL.................... 245 404 99 531 414 220 475 424 201 HHG-PORT HANDLING............ 0 40 0 5,281 41 218 6,904 42 291 POV.......................... 2,886 3,044 8,784 4,666 3,108 14,500 11,634 3,173 36,912 OVERWATER RATE............. $ 19,879 $ 30,688 $ 65,503 TOTAL ENLISTED............... $ 73,293 $ 153,955 $ 151,725 TOTAL PCS ACCESSION TRAVEL............... $ 94,344 $ 205,707 $ 203,641

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Project: Training Travel


Officers. This program element funds CONUS PCS movements for officers and warrant officers: (1) from current permanent duty station to formal service or civilian schools, including technical schools, pilot training, factory training, and other approved courses of instruction of 20 weeks duration or more; and (2) to next CONUS permanent duty station upon completion of school or when eliminated from school prior to completion. This account excludes academy graduates, Officer Candidate School graduates, Reserve Officer Training Corps graduates, and others (chargeable as Accession travel) and those officers and warrant officers who are moving into and out of a training seat from/to an overseas location (chargeable as Rotational travel). Enlisted. This program element funds PCS movements of: (1) enlisted personnel from previous CONUS permanent duty station to formal service or civilian schools, including technical schools, aircraft maintenance training, factory training, and other approved courses of instruction, of 20 weeks duration or more; (2) enlisted school graduates and those eliminated from school to their next CONUS permanent duty station; and (3) enlisted personnel ordered to training leading to a commission, if such training period is of 20 weeks duration or more. Excluded are those soldiers moving in or out of a training seat to or from an overseas location (chargeable as Rotational travel).


These funding requirements result from officer and enlisted personnel attending military, other federal government, and civilian training programs. Training is required to maintain the requisite skill levels/educational levels required by an Army that is capable of responding to strategic obligations in the evolving international environment. Training moves support the requirement to shape the force for tomorrow and the Army's duty to prepare soldiers to perform their required mission. Through training moves, the Army is provided with soldiers trained in aviation, medical specialties, linguistics, force modernization, leadership skills, and Special Forces operations. The following table provides detailed cost computations:

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PCS TRAINING TRAVEL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT OFFICER MEMBER MILEAGE AND PER DIEM.. 5,743 $ 1,128 $ 6,478 2,765 $ 1,152 $ 3,184 4,359 $ 1,176 $ 5,125 DEPENDENT MILEAGE............ 2,312 1,359 3,142 1,769 1,387 2,454 3,588 1,417 5,082 DISLOCATION ALLOWANCE........ 8,884 1,277 11,346 1,546 1,317 2,036 2,964 1,352 4,008 HHG-LAND SHIPMENT............ 5,470 4,589 25,100 2,831 4,703 13,315 4,915 4,807 23,626 TRAILER ALLOWANCE............ 9 580 5 2 594 1 3 607 2 LAND RATE.................. $ 46,071 $ 20,990 $ 37,843 ENLISTED MEMBER MILEAGE AND PER DIEM.. 2,995 $ 571 $ 1,710 1,419 $ 583 $ 827 1,689 $ 595 $ 1,005 DEPENDENT MILEAGE............ 12,924 1,390 17,960 7,606 1,419 10,792 5,682 1,449 8,231 DISLOCATION ALLOWANCE........ 4,313 657 2,835 946 678 641 1,450 696 1,009 HHG-LAND SHIPMENT............ 2,257 3,144 7,095 1,020 3,222 3,287 1,599 3,293 5,266 TRAILER ALLOWANCE............ 9 580 5 7 594 4 20 607 12 LAND RATE.................. $ 29,605 $ 15,551 $ 15,523 TOTAL PCS TRAINING TRAVEL................ $ 75,676 $ 36,541 $ 53,366

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Project: Operational Travel


Officers. This program element covers PCS movements of: (1) officers and warrant officers to and from permanent duty stations located within the United States; (2) officers and warrant officers to and from permanent duty stations located within an overseas area when no transoceanic travel is involved; and (3) dependents, household goods, personal effects, trailer allowances, and privately owned vehicles of officers and warrant officers who are interned, missing, or captured provided no transoceanic travel is involved. Enlisted. This program element covers PCS movements of: (1) enlisted personnel to and from permanent duty stations located within the United States; (2) enlisted personnel to and from permanent duty stations within an overseas area when no transoceanic travel is involved; and (3) dependents, household goods, personal effects, trailer allowances, and privately owned vehicles of enlisted personnel who are interned, missing, or captured provided no transoceanic travel is involved.


Operational moves are critical to the Army’s ability to maintain readiness throughout the force. They are necessary to maintain units at required personnel readiness levels; support activations and inactivations; fill joint duty positions mandated under the Goldwater-Nichols DOD Reorganization Act of 1986; correct imbalances of skill and grade; support humanitarian, compassionate, and joint domicile needs; assign personnel to key positions in response to unprogrammed/unanticipated requirements, support Base Realignment and Closure actions and to fill high priority units. The following table provides detailed cost computations:

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PCS OPERATIONAL TRAVEL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT OFFICER MEMBER MILEAGE AND PER DIEM.. 7,005 $ 4,316 $ 30,231 10,144 $ 4,402 $ 44,653 6,695 $ 4,490 $ 30,060 DEPENDENT MILEAGE............ 2,590 2,158 5,589 4,467 2,201 9,833 1,769 2,245 3,972 DISLOCATION ALLOWANCE........ 6,699 2,076 13,910 8,706 2,141 18,638 3,143 2,199 6,910 HHG-LAND SHIPMENT............ 3,612 9,299 33,589 5,570 9,532 53,092 2,642 9,741 25,737 TRAILER ALLOWANCE............ 22 580 13 3 594 2 5 607 3 LAND RATE.................. $ 83,332 $ 126,218 $ 66,682 ENLISTED MEMBER MILEAGE AND PER DIEM.. 27,249 $ 856 $ 23,312 22,678 $ 873 $ 19,790 7,683 $ 890 $ 6,839 DEPENDENT MILEAGE............ 62,975 856 53,877 39,423 873 34,402 4,473 961 4,297 DISLOCATION ALLOWANCE........ 27,961 1,048 29,317 34,323 1,081 37,103 3,842 1,110 4,265 HHG-LAND SHIPMENT............ 18,012 4,679 84,278 13,318 4,796 63,873 11,507 4,902 56,402 TRAILER ALLOWANCE............ 28 580 16 15 594 9 5 607 3 LAND RATE.................. $ 190,800 $ 155,177 $ 71,806 TOTAL PCS OPERATIONAL TRAVEL............. $ 274,132 $ 281,395 $ 138,488

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Project: Rotational Travel


Officers. This program element covers PCS movements of officers and warrant officers: (1) from permanent duty stations in CONUS to permanent duty stations overseas; (2) from permanent duty stations overseas to permanent duty stations in CONUS; (3) from permanent duty stations in one overseas area to permanent duty stations in another overseas area, but only when transoceanic travel is involved; and (4) dependents, household goods, personal effects, trailer allowance, and privately owned vehicles of officers and warrant officers who are interned, missing, or captured, but only when transoceanic travel is involved. Enlisted. This program element covers PCS movements of enlisted personnel: (1) from permanent duty stations in CONUS to permanent duty stations overseas; (2) from permanent duty stations overseas to permanent duty stations in CONUS; (3) from permanent duty stations overseas to permanent duty stations in another overseas area, but only when transoceanic travel is involved; and (4) dependents, household goods, personal effects, trailer allowances, and privately owned vehicles of enlisted personnel who are interned, missing, or captured, but only when transoceanic travel is involved.


Rotational moves are driven by the commitment to station an appropriate number of the force overseas in support of the National Military Strategy. The number of moves required is determined by overseas end strength and the average time actually served overseas, less the number of overwater accession, separation, and unit moves. This budget includes funding for increased moves due to Integrated Global Presence and Basing Strategy (IGPBS).

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PCS ROTATIONAL TRAVEL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT OFFICER MEMBER MILEAGE AND PER DIEM.. 8,172 $ 5,924 $ 48,409 9,000 $ 8,225 $ 74,022 7,735 $ 9,406 $ 72,752 DEPENDENT MILEAGE............ 1,001 5,975 5,981 1,800 6,094 10,970 433 6,217 2,692 DISLOCATION ALLOWANCE........ 11,009 1,394 15,348 3,972 1,437 5,709 3,297 1,476 4,867 HHG-LAND SHIPMENT............ 2,957 5,905 17,460 4,806 6,052 29,087 7,999 6,185 49,477 TRAILER ALLOWANCE............ 159 579 92 51 593 30 49 606 30 LAND RATE.................. $ 87,290 $ 119,818 $ 129,818 MEMBER-AMC................... 163 $ 1,049 $ 171 270 $ 1,052 $ 284 232 $ 1,052 $ 244 MEMBER-COMM AIR.............. 8,009 675 5,408 8,730 692 6,042 7,503 707 5,307 DEPENDENT-AMC................ 3 1,000 3 91 1,055 96 232 1,052 244 DEPENDENT-COMM AIR........... 7,584 662 5,021 8,731 679 5,925 5,567 694 3,861 HHG-ITGBL.................... 26 1,615 42 94 1,660 156 212 1,693 359 HHG-PORT HANDLING............ 235 162 38 629 165 104 3,697 184 682 POV.......................... 4,274 3,044 13,008 1,205 3,108 3,745 774 3,173 2,456 OVERWATER RATE............. $ 23,691 $ 16,352 $ 13,153 TOTAL OFFICER.................. $ 110,981 $ 136,170 $ 142,971

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PCS ROTATIONAL TRAVEL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT ENLISTED MEMBER MILEAGE AND PER DIEM.. 47,338 $ 2,946 $ 139,440 67,875 $ 3,011 $ 204,373 44,150 $ 3,077 $ 135,849 DEPENDENT MILEAGE............ 8,869 2,473 21,932 8,801 2,522 22,199 1,717 1,873 3,216 DISLOCATION ALLOWANCE........ 75,798 489 37,090 14,125 505 7,126 4,879 518 2,528 HHG-LAND SHIPMENT............ 17,245 1,956 33,737 25,218 2,005 50,568 22,602 2,049 46,320 TRAILER ALLOWANCE............ 45 578 26 12 592 7 45 605 27 LAND RATE.................. $ 232,225 $ 284,273 $ 187,940 MEMBER-AMC................... 473 $ 806 $ 381 1,320 $ 800 $ 1,056 343 $ 805 $ 276 MEMBER-COMM AIR.............. 46,865 633 29,651 42,682 649 27,680 34,002 663 22,536 DEPENDENT-AMC................ 0 0 0 35 800 28 117 803 94 DEPENDENT-COMM AIR........... 6,930 567 3,928 2,162 581 1,256 3,400 594 2,019 HHG-ITGBL.................... 14 1,714 24 36 1,757 64 31 1,796 55 HHG-PORT HANDLING............ 88 170 15 8,820 178 1,566 6,869 181 1,245 POV.......................... 2,006 3,043 6,105 1,709 3,108 5,311 1,284 3,173 4,074 OVERWATER RATE............. $ 40,104 $ 36,961 $ 30,299 TOTAL ENLISTED............... $ 272,329 $ 321,234 $ 218,239 TOTAL PCS ROTATIONAL TRAVEL.............. $ 383,310 $ 457,404 $ 361,210

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Project: Separation Travel


Officers. This program element covers PCS movements of officers and warrant officers upon separation from the service from their last permanent duty station to their home of record, point of entry into service, or to their home of selection when authorized by law. Enlisted. This program element covers PCS movements of enlisted personnel upon separation from the service from last permanent duty station to their home of record, point of entry into service, or to their home of selection when authorized by law. Cadets. Covers PCS movements of cadets separated from the academy to their home of record or point of entry into service.


Separations are based on projected personnel losses. Detailed cost computations are provided in the following table:

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PCS SEPARATION TRAVEL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT OFFICER MEMBER MILEAGE AND PER DIEM.. 7,336 $ 292 $ 2,141 7,931 $ 298 $ 2,363 7,890 $ 304 $ 2,398 DEPENDENT MILEAGE............ 4,523 146 660 6,061 149 903 5,521 152 839 HHG-LAND SHIPMENT............ 2,923 4,439 12,975 3,187 4,550 14,501 3,094 4,650 14,388 TRAILER ALLOWANCE............ 5 580 3 0 594 0 2 607 1 LAND RATE.................. $ 15,779 $ 17,767 $ 17,626 MEMBER-AMC................... 0 $ 800 $ 0 3 $ 800 $ 2 3 $ 800 $ 2 MEMBER-COMM AIR.............. 1,467 3,985 5,847 1,583 4,085 6,467 1,575 4,175 6,575 DEPENDENT-AMC................ 0 800 0 3 800 2 3 800 2 DEPENDENT-COMM AIR........... 235 3,988 937 1,664 4,088 6,802 1,327 4,178 5,544 HHG-ITGBL.................... 15 970 15 44 994 44 44 1,016 45 HHG-PORT HANDLING............ 0 97 0 475 99 47 465 101 47 POV.......................... 444 3,044 1,351 1,542 3,108 4,792 742 3,173 2,354 OVERWATER RATE............. $ 8,150 $ 18,156 $ 14,569 TOTAL OFFICER................ $ 23,929 $ 35,923 $ 32,195 TOTAL CADETS................... 198 $ 556 $ 110 182 $ 1,038 $ 189 182 $ 1,005 $ 183 TOTAL OFFICER AND CADETS....... $ 24,039 $ 36,112 $ 32,378

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PCS SEPARATION TRAVEL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT ENLISTED MEMBER MILEAGE AND PER DIEM.. 80,004 $ 196 $ 15,664 76,998 $ 200 $ 15,392 78,759 $ 204 $ 16,059 DEPENDENT MILEAGE............ 49,341 98 4,830 17,019 100 1,701 18,431 102 1,877 HHG-LAND SHIPMENT............ 22,781 2,329 53,054 36,483 2,387 87,087 39,117 2,440 95,429 TRAILER ALLOWANCE............ 48 580 28 25 594 15 36 607 22 LAND RATE.................. $ 73,576 $ 104,195 $ 113,387 MEMBER-AMC................... 1 $ 800 $ 1 88 $ 800 $ 70 54 $ 800 $ 43 MEMBER-COMM AIR.............. 17,334 1,084 18,783 16,596 1,111 18,433 15,698 1,135 17,819 DEPENDENT-AMC................ 28 800 22 40 800 32 24 800 19 DEPENDENT-COMM AIR........... 672 1,084 728 4,915 1,111 5,459 3,140 1,135 3,564 HHG-ITGBL.................... 107 815 87 228 835 190 391 854 334 HHG-PORT HANDLING............ 0 81 0 16,444 83 1,368 7,885 85 669 POV.......................... 3,456 3,044 10,519 1,553 3,108 4,826 1,575 3,173 4,997 OVERWATER RATE............. $ 30,140 $ 30,378 $ 27,445 TOTAL ENLISTED............... $ 103,716 $ 134,573 $ 140,832 TOTAL PCS SEPARATION TRAVEL.............. $ 127,755 $ 170,685 $ 173,210

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(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 3,709 ESTIMATE FY 2006 $ 9,759 ACTUAL FY 2005 $15,011

Project: Travel of Organized Units

Part I - Purpose and Scope Officers. This program element covers PCS movements (CONUS or overseas) of: (1) officers and warrant officers directed to move as members of an organized unit movement; and (2) officer and warrant officer fillers and replacements directed to move as part of the unit move. Enlisted. This program element covers PCS movements (CONUS or overseas) of: (1) enlisted personnel directed to move as members of an organized unit movement; and (2) enlisted fillers and replacements directed to move as part of the unit move.

Part II - Justification of Funds Requested Unit moves are required to support changes in force structure that necessitate realignment of forces to correct imbalances of support/command/control units, and to maintain unit tactical integrity. Costs are based on point-to-point unit moves. The numbers of unit moves are down due to the Army repositioning, and by the fielding of new equipment/units. The following table provides detailed cost computations:

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PCS ORGANIZED UNIT TRAVEL (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT OFFICER MEMBER MILEAGE AND PER DIEM.. 200 $ 3,460 $ 692 310 $ 3,529 $ 1,094 236 $ 3,600 $ 850 DEPENDENT MILEAGE............ 245 1,730 424 439 1,765 775 143 1,800 257 DISLOCATION ALLOWANCE........ 298 1,174 350 247 1,210 299 168 1,243 209 HHG-LAND SHIPMENT............ 20 10,106 202 124 10,358 1,284 61 10,586 646 TRAILER ALLOWANCE............ 5 580 3 13 594 8 5 607 3 LAND RATE.................. $ 1,671 $ 3,460 $ 1,965 ENLISTED MEMBER MILEAGE AND PER DIEM.. 6,890 $ 798 $ 5,495 3,571 $ 814 $ 2,905 807 $ 830 $ 670 DEPENDENT MILEAGE............ 1,708 399 681 2,144 407 872 323 415 134 DISLOCATION ALLOWANCE........ 3,616 657 2,377 1,785 678 1,210 542 696 377 HHG-LAND SHIPMENT............ 1,464 3,261 4,774 376 3,342 1,257 162 3,416 553 TRAILER ALLOWANCE............ 22 580 13 93 594 55 16 607 10 LAND RATE.................. $ 13,340 $ 6,299 $ 1,744 TOTAL PCS ORGANIZED UNIT TRAVEL.......... $ 15,011 $ 9,759 $ 3,709

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PCS - NON-TEMPORARY STORAGE (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AMOUNT AMOUNT AMOUNT NON-TEMPORARY STORAGE.......................... $ 23,955 $ 40,829 $ 42,121 TEMPORARY LODGING EXPENSE...................... 30,856 23,068 23,053 TOTAL OBLIGATIONS............................ $ 1,025,039 $ 1,225,388 $ 998,798 LESS: REIMBURSABLE OBLIGATIONS............... 2,129 2,173 2,219 TOTAL DIRECT OBLIGATIONS....................... $ 1,022,910 $ 1,223,215 $ 996,579

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Schedule of Increases and Decreases (Amounts in thousands of dollars) Other Military Personnel Costs FY 2006 Direct Program $ 419,024 Increases: Pricing Increases: a. Increase in rates for Death Gratuities. 200 b. Increase in rates for Partial DLA. 82 Total Pricing Increases 282 Program Increases: a. Increase in number of personnel receiving 9,235 Unemployment Benefits. b. Increase in number of personnel receiving Adoption 300 Expense allowances. c. Increase in personnel receiving Mass Transit 35 Subsidy. d. New mission - ROTC added to active component. 2,281 e. New mission - JROTC added to active component. 684 Total Program Increases 12,535 Total Increases $ 12,817 Decreases: Pricing Decreases: a. Decrease in rates for Unemployment Benefits. (8,702) Total Pricing Decreases (8,702) Program Decreases: a. Decrease in number of takers for Interest on (92) Soldiers Deposits. b. Decrease in Death Gratuities. Incremental costs (52,366) associated with the war not included in the base budget. c. Decrease in number of personnel receiving Survivor (299) Benefits. d. Decrease in number of personnel receiving (2,030) Educational Benefits. e. Decrease in number of personnel receiving Partial (60) DLA. f. Decrease in SGLI Extra Hazard payments. Program (22,808) costs not included in the base budget. g. Decrease in SGLI Traumatic Injury Payments. (57,800) Total Program Decreases (135,455) Total Decreases $ (144,157) FY 2007 Direct Program $ 287,684

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(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 1,407 ESTIMATE FY 2006 $ 1,398 ACTUAL FY 2005 $ 838

Project: Apprehension of Deserters

Part I - Purpose and Scope The funds requested provide for expenses in connection with the apprehension of deserters, absentees, and escaped military prisoners and for their delivery to the control of the Department of Defense. Expenses are authorized by 10 U.S.C. section 956 “Deserters, Prisoners, Members Absent without Leave: Expenses and Rewards”. Expenses includes: 1. the transportation of escorts and prisoners, 2. lodging and subsistence of the escort, 3. subsistence while in civilian detention facilities, 4. rewards and 5. reimbursement of reasonable and actual expenses. Reimbursement may not be made for the same apprehension and detention or delivery for which a reward has been paid. Reimbursements or rewards cannot exceed $75.00.

Part II - Justification of Funds Requested Cost estimates are based on factors developed from current expenditure experience as applied against programmed man-years. Detailed cost computations are provided by the following table:

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OTHER MILITARY PERSONNEL COSTS APPREHENSION OF DESERTERS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AMOUNT AMOUNT AMOUNT TRAVEL AND OTHER EXPENSES INCIDENT TO THE APPREHENSION AND DELIVERY OF DESERTERS, PRISONERS AND SOLDIERS AWOL INCLUDING PAYMENT OF CONFINEMENT OF MILITARY PRISONERS IN NON-MILITARY FACILITIES........ $ 838 $ 1,398 $ 1,407

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(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 203 ESTIMATE FY 2006 $ 294 ACTUAL FY 2005 $ 10,102

Project: Interest on Soldiers’ Deposits

Part I - Purpose and Scope The National Defense Authorization Act for FY 1992 and FY 1993, Section 639 amends Section 1035 of Title 10 U.S.C. This section establishes a savings program for overseas members participating in temporary duty contingency operations. Past experience indicates that the Department of the Army will be required to fund the difference between ten percent paid and the average Treasury Bill rates.

Part II - Justification of Funds Requested The amount budgeted is based on current experience in relation to the number of Army participants. Detailed cost computations are provided by the following table:

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OTHER MILITARY PERSONNEL COSTS INTEREST ON SOLDIERS' DEPOSIT (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT INTEREST ON SOLDIERS' DEPOSIT OFFICER................................... 911 $ 296 $ 270 480 $ 296 $ 142 333 $ 295 $ 98 ENLISTED.................................. 63,841 154 9,832 987 154 152 681 154 105 TOTAL....................................... 64,752 $ 10,102 1,467 $ 294 1,014 $ 203

146


Project: Death Gratuities Part I - Purpose and Scope The funds requested are for the payment of enhanced death gratuities to beneficiaries of deceased military personnel as authorized by law. Enhanced death gratuities are composed of basic pay, incentive pay, and overseas pay, if applicable. The National Defense Authorization Act for FY 2004 section 646, and the Military Families Tax Relief Act of 2003, P.L. 108-121, section 102 amends Section 1478(a) of Title 10 U.S.C., increasing the amount payable. The National Defense Authorization Act for FY 2005 section 643, increases the death gratuity consistent with increases of rates of basic pay effective on the same date as the basic pay rates under section 204 of title 37 are increased. The Emergency Supplemental Appropriation Act for the GWOT and Tsunami Relief of 2005, P.L. 109-52 increased the amount to $100,000 for deaths resulting from wounds, injuries, and illness incurred in a combat operation zone. Public Law 109-13 for retroactive payment of death benefits that meet specific date and circumstance criteria outlined in 10 U.S.C. 1478. 38 U.S.C. 1967 authorizes a new $150,000 Combat addition to SGLI beginning September 1, 2005. Part II - Justification of Funds Requested Fund requirements are based on the most recent mortality rates as applied against programmed man-years of personnel and the statutory gratuity payment. Retroactive payments are included in FY 2005, payments are computed retroactively to October 7, 2001. Detailed cost computations are provided by the following table:

147

OTHER MILITARY PERSONNEL COSTS DEATH GRATUITIES (AMOUNTS IN THOUSANDS OF DOLLARS)

Death Gratuity

Actual FY 2005

Estimate FY 2006

Estimate FY 2007

Number Rate Amount Number Rate Amount Number Rate Amount

Officer 160 $12,337 $1,974 67 $12,709 $851

88 13,065 $1,147

Enlisted 904 $12,337 $11,153 380 $12,709 $4,829

428 13,065 $5,588

Cadet 3 $12,337 $37 3 $12,709 $38 2 13,065 26

Total 1067

$13,164

450

$5,718

518 $6,761

Enhanced Death Gratuities

Oct - Dec

Officer* 58 $88,000 $5,104 17 $87,663 $1,490

Enlisted* 337

$88,000

$29,656

93

$87,663

$8,153

Jan - Sep

Officer 34 $87,663 $2,981 51 $87,291 $4,452

Enlisted 192

$87,663

$16,831 286 $87,291 $24,965

Cadets 3 $87,291 $262

Total 621

$54,572

450

$39,322

SGLI Gratuity

Officer 86 $150,000 $12,900 0 $150,000 $0

Enlisted 486 $150,000 $72,900 93 $150,000 $13,898

Total 572

$85,800

93

Enhanced Death Gratuities (Retro)

Officer 150 $88,000 $13,200 0 $88,000 $0

Enlisted 852 $88,000 $74,976 0 $88,000 $0

Total 1002

$88,176

SGLI Retro Gratuity

Officer 150 $150,000 $22,500 0 $150,000 $0

Enlisted 760 $150,000 $114,010 0 $150,000 $0

Total

910 $136,510

Grand Total

$378,222

$58,938

$6,761

148

(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 0 ESTIMATE FY 2006 $ 57,800 ACTUAL FY 2005 $ 0

Project: SGLI Traumatic Injury Payments

Part I - Purpose and Scope The Military Services are required to submit to the Department of Veterans Affairs payments for the program start-up, retroactive, and future costs associated with the recently enacted T-SGLI program, which was established under Section 1032 of the FY 2005 DoD Emergency Supplemental Appropriations for the Global War on terror and Tsunami Relief (P.L. 109-13).


The funds are required to make Traumatic Service Members’ Group Life Insurance (TSGLI) payments. TSGLI is a new benefit for Soldiers who incurred a traumatic injury in support of Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF). This new traumatic injury protection available under the Service Members’ Group Life Insurance (SGLI) plan provides financial assistance to eligible Soldiers and their families, which is vital during their extensive recovery and rehabilitation process. The following table provides detailed cost computations:

149

OTHER MILITARY PERSONNEL COSTS SGLI TRAUMATIC INJURY PAYMENTS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AMOUNT AMOUNT AMOUNT SGLI TRAUMATIC INJURY PAYMENTS............ $ 0 $ 57,800 $ 0

150


Project: Unemployment Benefits Paid to Ex-Service Members

Part I - Purpose and Scope Funds are to pay unemployment benefits to ex-service members who are discharged or released under honorable conditions as prescribed in Paragraph (1) of Section 8521(a) of Title 5, United States Code. The Department of Labor is the executive agency for the program; however, program administration is accomplished by each state. Generally, an ex-service member is eligible if discharged or released under honorable conditions, and member completed his first full term of active service. Also eligible is one who was discharged or released before completing first term of service for the convenience of the Government, because of medical disqualification, hardship, personal disorders, or ineptitude, but only if the service was continuous for 365 days or more. The Emergency Unemployment Compensation Act of 1991 (P.L. 102-164) extended unemployment compensation benefits for former military personnel up to 26 weeks with a one-week waiting period. The law also reduced the amount of active duty days required in a reserve status from 180 continuous days to 90 continuous days to be considered as "federal service" for claim purposes. The Job Creation and Worker Assistance Act of 2002 (P.L. 107-147) extended unemployment compensations benefits an additional 13 weeks for workers who had exhausted the original 26 weeks of benefits. The Temporary Extended Unemployment Compensation (TEUC) Act of 2002 (P.L. 108-1) extends the unemployment compensations benefits an additional 5 months for workers who had exhausted the original 26 weeks and the TEUC of 13 weeks.

Part II - Justification of Funds Requested The estimated unemployment benefit payments are based on programmed separations from the Army and average monthly benefit amounts of compensation actually disbursed in FY 2004. In addition, the Army’s cost projections have incorporated U.S. Department of Labor’s estimates. Detailed cost computations are provided by the following table:

151

OTHER MILITARY PERSONNEL COSTS UNEMPLOYMENT BENEFITS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT UNEMPLOYMENT BENEFITS............. 15,097 $ 13,376 $ 201,932 11,562 $ 13,193 $ 152,539 12,262 $ 12,483 $ 153,072

152


Project: Survivor Benefits

Part I - Purpose and Scope Funds are requested to provide for payments of restored social security and educational benefits to widows and orphans of deceased Army military personnel. Section 156 of Public Law 97-37, modified by Section 943 of the DOD Authorization Act, 1984, P.L. 98-94, Stat. 614, restored these Social Security benefits to survivors of military members, and directed the Department of Defense to budget for this requirement. Cost estimates from the Department of Veterans Affairs include P.L. 106-419, Subtitle B, Survivor’s, and Dependent's Educational Assistance, Sec 111, Reinstatement Entitlement Program for Survivor's (REPS).

Part II - Justification of Funds Requested Cost estimates from the Department of Veterans Affairs are based on average benefit payments and caseload for spouses and children in school. The latest Department of Veterans Affairs cost estimates are provided in the following table:

153

OTHER MILITARY PERSONNEL COSTS SURVIVOR BENEFITS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AMOUNT AMOUNT AMOUNT SURVIVOR BENEFIT COSTS.................... $ 5,587 $ 3,677 $ 3,378

154


Project: Educational Benefits

Part I - Purpose and Scope This program is budgeted on an accrual basis by the Department of Defense. The DOD Board of Actuaries establishes per capita normal costs and amortization rates for each fiscal year. Actual benefit payments to individuals will be made by the Department of Veterans Affairs from funds transferred from the Trust Fund account. The 1999 Strom Thurmond National Defense Authorization Act increased the maximum amount of educational benefits authorized to $50,000. Beginning in FY 2000 OSD realigned funding for the College Fund to BA2 Enlisted Pay in order to enhance recruiting efforts. The amortization payment along with the post-Vietnam era voluntary and involuntary separatees costs remain in BA6. Under 10 U.S.C. Sec 2006(f)(3, 4); (g)(2), the Secretary of Defense must determine an amortization methodology and schedule to liquidate any unfunded liability or surplus in the Fund, based on the most recent actuarial valuation. Also, the basic benefits of post-Vietnam era voluntary and involuntary separatees are not prefunded. The amortization payment for these benefits is based on the most recent valuation of the DOD Education Benefits Fund. PART II - Justification of Funds Requested The following table provides detailed cost computations:

155

OTHER MILITARY PERSONNEL COSTS EDUCATIONAL BENEFITS (AMORTIZATION PAYMENTS) (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AMOUNT AMOUNT AMOUNT INVOLUNTARY SEPARATEES............ $ 2,979 $ 4,214 $ 2,184 UNFUNDED LIABILITY................ 0 0 0 TOTAL AMORTIZATION PAYMENTS..... $ 2,979 $ 4,214 $ 2,184

156

(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 746 ESTIMATE FY 2006 $ 446 ACTUAL FY 2005 $ 442

Project: Adoption Expenses

Part I - Purpose and Scope Section 651 of the National Defense Authorization Act for FY 1992 and FY 1993 permanently established the adoption program to reimburse service members for adoption expenses of a child under the age of 18 years.

Part II - Justification of Funds Required The average amount payable is $2,000 per adoption. Expenses include public and private agency fees; legal fees; medical expenses associated with the child, biological mother, and adoptive parents; temporary foster care; and other expenses approved by the Department of Defense. Detailed cost computations are provided by the following table:

157

OTHER MILITARY PERSONNEL COSTS ADOPTION EXPENSES (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT ADOPTION EXPENSES........................... 221 $ 2,000 $ 442 223 $ 2,000 $ 446 373 $ 2,000 $ 746

158


Project: Partial DLA


Section 636 of the FY 2002 National Defense Authorization Act (P.L. 107-107) provided a new entitlement for members of the uniformed service who have been ordered to vacate family housing provided by the United States to permit the privatization or renovation of the housing to be paid a Partial Dislocation Allowance of $500. Effective on the same date that the monthly rates of basic pay for all members are increased under section 1009 of the NDAA the Secretary of Defense shall adjust the rate of the Partial Dislocation Allowance authorized by the average percentage increase in the basic pay rates.


Cost estimates are based on an estimated number of participants and rate data.

159

OTHER MILITARY PERSONNEL COSTS PARTIAL DLA EXPENSES (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT PARTIAL DLA EXPENSES........................ 1,177 $ 518 $ 610 4,621 $ 534 $ 2,468 4,509 $ 552 $ 2,489

160

(AMOUNTS IN THOUSANDS OF DOLLARS) ESTIMATE FY 2007 $ 0 ESTIMATE FY 2006 $ 22,808 ACTUAL FY 2005 $ 70,869

Project: SGLI Extra Hazard Payments

Part I - Purpose and Scope These payments are required under section 1969(b) of title 38, United States Code, when actual mortality rates exceed peacetime mortality rates.

Part II - Justification of Funds Requested The funds are required to make extra hazard payment to the Department of Veterans Affairs to cover an increase in the number of SGLI death claims for policy year 2004/2005. The following table provides detailed cost computations:

161

OTHER MILITARY PERSONNEL COSTS SGLI EXTRA HAZARD PAYMENTS (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 AMOUNT AMOUNT AMOUNT SGLI EXTRA HAZARD PAYMENTS................ $ 70,869 $ 22,808 $ 0

162


Project: ROTC Part 1 - Purpose and Scope

Provides for Senior ROTC cadets’ pay and allowances as part of the Army’s officer accession requirements. Funds scholarship and non-scholarship cadet pay, stipends, subsistence, and uniforms. Senior ROTC Non-Scholarship Program

The funds requested provide military personnel costs for students enrolled in the Reserve officers Training Corps Senior program authorized by 10 U.S.C. 2101-2111. Provides for Senior ROTC cadets’ pay and allowances as part of the Army's officer accession requirements. Provides a stipends allowances of $350 per month for MS III and $400 per month for MS IV to students enrolled in Military Science MS III and MS IV courses in accordance with the provisions of 37 U.S.C. 209. This budget also provides a subsistence allowance for ROTC non-scholarship advance course cadets while attending an educational institution, the procurement of individual clothing, a commutation allowance in lieu of uniform issue for schools with distinctive uniforms, and pay and allowances, and subsistence for ROTC nonscholarship advance course cadets while at ROTC summer camps and field training.

The subsistence allowance at educational institutions for Advanced Course payment begins on the date of participation and continues uninterrupted except for the period of field training until completion of instruction, but not more than 20 months (30 months as authorized for extended entitlement for a 5-year program) at the rate of $250 per month for MSI, $300 per month for MSII, $350 per month for MSIII, $400 per month for MSIV beginning in FY2002 and ending with the academic year.

Cadet Troop Leader Training (CTL) - Each tour consists of 21 days training with an Active Army unit or 14 days training with a Reserve Component unit (average tour is 19 days).

Professional Development Training (PDT) - Includes Airborne, Air Assault, Northern Warfare, and Jungle Warfare Training for periods up to 21 days. Training emphasizes improvement of cadet skills, confidence and readiness in a cost-effective manner with challenging programs that influence cadet enrollment, motivation, and retention.

Practical Field Training (PFT) - Two days training (field exercises/command post exercises) to train, test and validate all ROTC cadets in specific military skills before reporting to their first duty stations. Funds provide for cadet rations and travel (contract bus) to and from tactical training sites.

163

Senior ROTC Scholarship Program Funds requested provide military personnel costs for students enrolled in the Reserve Officers Training Corps Scholarship program authorized by 10 U.S.C. 2107. The estimate includes funds for a subsistence allowance for ROTC scholarship cadets while attending an educational institution, the procurement of individual clothing, a commutation allowance in lieu of uniform issue for schools with distinctive uniforms, and pay and allowances, subsistence, and travel for ROTC scholarship cadets while at ROTC summer camps and field training.

The subsistence allowance at educational institutions is based upon the contracted enrollment levels for Basic Course and is computed at $200 per month for up to 10 months annually, based on the actual contract date and ending with the academic year. The Advance Course payment begins on the contract date and continues uninterrupted except for the period of field training until completion of instruction, but not more than 20 months (30 months as authorized for extended entitlements for a 5-year program) at the rate of $250 per month for MSI, $300 per month for MSII, $350 per month for MSIII, $400 per month for MSIV courses in accordance with the provisions o 37 U.S.C. 209.

Cadet Troop Leader Training (CTL) - Each tour consists of 21 days training with an Active Army unit or 14 days training with a Reserve Component unit (average tour is 19 days).

Professional Development Training (PDT) - Includes Airborne, Air Assault, Northern Warfare, and Jungle Warfare Training for periods up to 21 days. Training emphasizes improvement of cadet skills, confidence and readiness in a cost-effective manner with challenging programs that influence cadet enrollment, motivation, and retention.

Practical Field Training (PFT) - Two days training (field exercises/command post exercises) to train, test and validate all ROTC cadets in specific military skills before reporting to their first duty stations. Funds provide for cadet rations and travel (contract bus) to and from tactical training sites.

164

OTHER MILITARY PERSONNEL COSTS RESERVE OFFICER TRAINING CANDIDATES (ROTC) SENIOR ROTC (NON-SCHOLARSHIP PROGRAM) (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 STRENGTH RATE AMOUNT STRENGTH RATE AMOUNT STRENGTH RATE AMOUNT STIPEND BASIC 0 $ 0 $ 0 462 $ 3,240 $ 1,497 484 $ 3,246 $ 1,571 ADVANCED 0 0 0 2,980 5,550 16,539 2,930 5,655 16,566 TOTAL 0 0 3,442 18,036 3,414 18,137 UNIFORMS, ISSUE-IN-KIND BASIC COURSE 0 0 0 10,998 237 2,607 12,777 468 5,980 ADVANCED COURSE 0 0 0 2,953 790 2,333 2,854 822 2,346 TOTAL 0 0 13,951 4,939 15,631 8,326 UNIFORMS, COMMUTATION-IN-LIEU

TOTAL 0 0 2,786 3,267 2,786 3,407 PAY & ALLOWANCES BASIC CAMP 0 0 0 1,200 869 1,043 1,200 888 1,066 ADVANCED CAMP 0 0 0 1,843 959 1,768 1,843 979 1,804 CADET TROOP LEADER 0 0 0 1,320 749 989 1,320 765 1,010 TOTAL 0 0 4,363 3,800 4,363 3,880 SUBSISTENCE OF RESERVE OFFICER CANDIDATES FIELD RATIONS BASIC CAMP 0 0 0 1,200 238 286 1,200 243 291 ADVANCED CAMP 0 0 0 1,843 222 409 1,843 226 417 PROFESSIONAL DEVELOPMENT 0 0 0 720 247 178 723 252 182 CADET TROOP LEADER TRAINING 0 0 0 1,320 148 195 1,320 151 199 PRACTICAL FIELD TRAINING 0 0 0 14,427 17 245 14,427 17 245 TOTAL 0 0 19,510 1,313 19,513 1,335 TOTAL NON-SCHOLARSHIP PROGRAM 0 $ 0 44,052 $ 31,356 45,707 $ 35,084

BASIC COURSE MALE 0 0 0 2,148 908 1,950 2,148 947 2,034 FEMALE 0 0 0 251 995 250 251 1,037 260 ADVANCED COURSE MALE 0 0 0 338 2,724 921 338 2,840 960 FEMALE 0 0 0 49 2,986 146 49 3,113 153

165

OTHER MILITARY PERSONNEL COSTS RESERVE OFFICER TRAINING CANDIDATES (ROTC) SENIOR ROTC (SCHOLARSHIP PROGRAM) (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 STRENGTH RATE AMOUNT STRENGTH RATE AMOUNT STRENGTH RATE AMOUNT STIPEND BASIC 0 $ 0 $ 0 3,000 $ 3,453 $ 10,359 3,185 $ 3,246 $ 10,339 ADVANCED 0 0 0 5,000 5,760 28,800 5,043 5,586 28,170 TOTAL 0 0 8,000 39,159 8,228 38,509 UNIFORMS, ISSUE-IN-KIND BASIC COURSE 0 0 0 759 791 600 868 806 700 ADVANCED COURSE 0 0 0 2,781 791 2,200 2,831 806 2,282 TOTAL 0 0 3,540 2,800 3,699 2,981 UNIFORMS, COMMUTATION-IN-LIEU BASIC COURSE MALE 0 0 0 486 908 441 486 927 451 FEMALE 0 0 0 57 995 57 57 1,016 58 ADVANCED COURSE MALE 0 0 0 370 2,724 1,008 370 2,781 1,029 FEMALE 0 0 0 54 2,986 161 54 3,049 165 TOTAL 0 0 967 1,667 967 1,702 PAY & ALLOWANCES ADVANCED CAMP 0 0 0 2,765 959 2,652 2,765 979 2,707 CADET TROOP LEADER 0 0 0 1,980 749 1,484 1,980 765 1,515 ROTC NURSE BONUS 0 0 0 225 5,000 1,125 225 0 0 TOTAL 0 0 4,970 5,261 4,970 4,222 SUBSISTENCE OF RESERVE OFFICER CANDIDATES FIELD RATIONS BASIC CAMP 0 0 0 0 52 0 0 53 0 ADVANCED CAMP 0 0 0 2,765 216 597 2,765 220 608 PROFESSIONAL DEVELOPMENT 0 0 0 1,086 247 268 1,086 252 274 CADET TROOP LEADER TRAINING 0 0 0 1,980 247 489 1,980 252 499 PRACTICAL FIELD TRAINING 0 0 0 8,472 35 297 8,472 35 297 TOTAL 0 0 14,303 1,651 14,303 1,677 TOTAL SCHOLARSHIP PROGRAM 0 $ 0 31,780 $ 50,538 32,167 $ 49,091 TOTAL ROTC PROGRAM 0 $ 0 75,832 $ 81,894 77,874 $ 84,175

166

MILITARY PERSONNEL, ARMY RESERVE OFFICER TRAINING CANDIDATES (ROTC) ENROLLMENT

FY05 Actual FY06 Estimate* FY07 Estimate Begin Average End Begin Average End Begin Average End Senior ROTC (Excluding Scholarship Program) First Year 0 0 0 6,735 6,101 5,698 8,228 7,228 6,828 Second Year 0 0 0 4,207 3,753 4,360 3,500 3,814 3,920 Total Basic ROTC 0 0 0 10,942 9,854 10,058 11,728 11,042 10,748 Third Year 0 0 0 2,630 2,427 2,219 4,070 3,704 3,619 Fourth Year 0 0 0 2,190 2,059 1,971 2,119 2,023 1,880 Total Advanced ROTC 0 0 0 4,820 4,486 4,190 6,189 5,727 5,499 Total Senior ROTC Enrollment 0 0 0 15,762 14,340 14,248 17,917 16,769 16,247 Scholarship Program First Year 0 0 0 903 1,162 1,421 850 2,676 2,477 Second Year 0 0 0 1,985 2,078 2,171 3,077 3,427 3,324 Total Basic ROTC 0 0 0 2,888 3,240 3,592 3,927 6,103 5,801 Third Year 0 0 0 3,061 3,119 3,176 3,324 2,844 2,820 Fourth Year 0 0 0 3,150 3,054 2,959 2,820 2,739 2,621 Total Advanced ROTC 0 0 0 6,211 6,173 6,135 6,144 5,583 5,441 Total Scholarship Enrollment 0 0 0 9,099 9,413 9,727 10,071 11,686 11,242 Total Enrollment First Year 0 0 0 7,638 7,263 7,119 9,078 9,904 9,305 Second Year 0 0 0 6,192 5,831 6,531 6,577 7,241 7,244 Total Basic ROTC 0 0 0 13,830 13,094 13,650 15,655 17,145 16,549 Third Year 0 0 0 5,691 5,546 5,395 7,394 6,548 6,439 Fourth Year 0 0 0 5,340 5,113 4,930 4,939 4,762 4,501 Total Advanced ROTC 0 0 0 11,031 10,659 10,325 12,333 11,310 10,940 Total ROTC Enrollment 0 0 0 24,861 23,753 23,975 27,988 28,455 27,489 Completed ROTC and Commissioned Total: 0 4,500 4,500 AC Commissions 2,750 2,750 RC Commissions Army National Guard 1,100 1,100 Army Reserve 650 650 Completed ROTC Commissioned Deferred:

167


Project: JROTC


Junior Reserve Officers’ Training Corps (JROTC) is a public service program available to high school students. This program fosters good citizenship, patriotism, and leadership skills for this valuable potential pool of military applicants. This program budget provide funds for the issue-in-kind uniforms and subsistence for students enrolled in the JROTC program at secondary education institutions as provided for in 10 U.S.C. 2031. In FY 2007 these funds supports 1,645 JROTC units in high school in the United States, Europe, Korea, and Japan.

Part II - Justification of Funds Requested JROTC remains one of the most successful Army programs enabling our ability to have a positive presence & foster citizenship programs in our high schools & communities. MPA funds provide core-level resources to operate the Army’s JROTC program in CONUS and OCONUS locations as mandated by the U.S. Congress. It funds costs of cadet issue-in-kind uniforms, accoutrements, meals at summer camp and laundry/alterations. Without these resources, the Army could not continue its JROTC program, which has strong public support.

168

OTHER MILITARY PERSONNEL COSTS JUNIOR RESERVE OFFICER TRAINING CANDIDATES (JROTC) (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 STRENGTH RATE AMOUNT STRENGTH RATE AMOUNT STRENGTH RATE AMOUNT UNIFORMS, ISSUE-IN-KIND 0 $ 0 $ 0 246,798 $ 99 $ 24,433 247,634 $ 101 $ 25,011 SUBSISTENCE OF RESERVE OFFICER CANIDATES FIELD RATIONS 0 0 0 18,079 139 2,513 18,190 142 2,583 OPERATIONAL RATIONS 0 0 0 14,716 88 1,295 14,789 90 1,331 TOTAL 0 0 32,795 3,808 32,979 3,914 TOTAL JROTC PROGRAM 0 $ 0 279,593 $ 28,241 280,613 $ 28,925

169

MILITARY PERSONNEL, ARMY JUNIOR RESERVE OFFICER TRAINING CANDIDATES (JROTC)

Funding provides for issue-in-kind uniforms and subsistence for students enrolled in the Junior ROTC program at secondary education institutions as provided for in 10 U.S.C. 2031. Uniforms, Issue-in-Kind: Funding provides for uniforms, including replacement items to members of the Junior ROTC program. FY05 Actual FY06 Estimate FY07 Estimate

Strength

Rate Amount Strength Rate Amount Strength Rate Amount Uniforms, Issue-in-Kind - - - 246,798 99 24,433 247,634 101 25,011

Subsistence of Reserve Officer Candidates: Funds requested are to provide subsistence for members attending summer camp. FY05 Actual FY06 Estimate FY07 Estimate

Strength

Rate Amount Strength Rate Amount Strength Rate Amount Field Rations - - - 18,079 139 2,513 18,190 142 2,583 Operational Rations - - - 14,716 88 1,295 14,789 90 1,331 Total - - 32,795 3,808 32,979 3,914 Travel - - - - - - - TOTAL JROTC PROGRAM - 28,241 28,925

170


Project: Mass Transit Subsidy

Part I - Purpose and Scope Executive Order 13150 entitled, "Federal Workforce Transportation,” Section One, required Federal Agencies to establish transportation benefit program for personnel using mass transportation or qualified vanpools.

Part II - Justification of Funds Requested Cost estimates are based on an estimated number of Military participants in the National Capital Region and qualified CONUS locations and rate data.

171

OTHER MILITARY PERSONNEL COSTS MASS TRANSIT EXPENSES (AMOUNTS IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 NUMBER RATE AMOUNT NUMBER RATE AMOUNT NUMBER RATE AMOUNT MASS TRANSIT EXPENSES................. 4,452 $ 1,245 $ 5,542 3,531 $ 1,220 $ 4,308 3,560 $ 1,220 $ 4,344 TOTAL DIRECT OMPC OBLIGATION AMOUNTS.................. $ 677,020 $ 361,225 $ 287,684

172

Section 5 Military Personnel, Army

Defense Working Capital Funds (DWCF) Reimbursements

Introduction The Defense Working Capital Funds (DWCF) (formerly the Defense Business Operations Fund (DBOF)) was established in order to expand the use of business-like financial management practices. DWCF was initiated to improve the tools available to managers of the support establishment by collecting all costs related to goods and services, including military costs. Prior to the DWCF, activities did not pay for the cost of military support. Reimbursements requested are for the cost of base pay and entitlements for military personnel assigned to DWCF activities.

Justification of Funds Requested The estimated reimbursements are based on the Under Secretary of Defense (Comptroller) guidance. Estimated manpower reflects the number of work years for each DWCF business area. Detailed cost by DWCF activity is provided by the following table:

173

SECTION 5 SCHEDULE OF MILITARY PERSONNEL ASSIGNED OUTSIDE DOD (END STRENGTH) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL NONREIMBURSABLE CLASSIFIED ACTIVITIES....... 0 0 0 0 0 0 0 0 0 CONGRESSIONAL FELLOWS....... 12 0 12 12 0 12 12 0 12 DENTAL HYGIENE PROGRAM...... 0 11 11 0 11 11 0 11 11 DEPARTMENT OF ENERGY........ 8 0 8 8 0 8 8 0 8 DEPARTMENT OF JUSTICE....... 8 0 8 8 0 8 8 0 8 DEPARTMENT OF STATE......... 29 1 30 29 1 30 29 1 30 DRUG ENFORCEMENT AGENCY..... 3 1 4 3 1 4 3 1 4 FBI......................... 1 1 2 1 1 2 1 1 2 FEMA........................ 1 1 2 1 1 2 1 1 2 LAW ENFORCEMENT SUPPORT OFFICE............. 3 2 5 3 2 5 3 2 5 MILITARY OBSERVERS.......... 7 0 7 7 0 7 7 0 7 NSC......................... 3 1 4 3 1 4 3 1 4 OFFICE OF NATIONAL DRUG CONTROL POLICY............. 10 0 10 10 0 10 10 0 10 PRESIDENTIAL CON PROGRAM.... 1 9 10 1 9 10 1 9 10 SSC FELLOWSHIP.............. 30 0 30 30 0 30 30 0 30 TRAINING WITH INDUSTRY...... 109 0 109 109 0 109 109 0 109 WHITE HOUSE COMMUNICATIONS AGENCY...... 31 401 432 31 401 432 31 401 432 WHITE HOUSE FELLOWS......... 2 0 2 2 0 2 2 0 2 WHITE HOUSE MILITARY OFFICE............ 18 6 24 18 6 24 18 6 24 WHITE HOUSE SERVICES AGENCY............ 13 67 80 13 67 80 13 67 80 WHITE HOUSE TRANSPORTATION AGENCY...... 0 0 0 0 0 0 0 0 0 OTHER AGENCIES.............. 0 0 0 0 0 0 0 0 0 TOTAL NONREIMBURSABLE.... 289 501 790 289 501 790 289 501 790

174

SECTION 5 SCHEDULE OF MILITARY PERSONNEL ASSIGNED OUTSIDE DOD (END STRENGTH) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL REIMBURSABLE AMERICAN BATTLE MONUMENTS COMM............. 0 0 0 0 0 0 0 0 0 CLASSIFIED ACTIVITIES...... 13 11 24 13 11 24 13 11 24 DEPARTMENT OF STATE........ 5 0 5 5 0 5 5 0 5 FBI........................ 2 0 2 2 0 2 2 0 2 INS........................ 0 0 0 0 0 0 0 0 0 LAW ENFORCEMENT SUPPORT OFFICE............. 2 0 2 2 0 2 2 0 2 NASA....................... 6 0 6 6 0 6 6 0 6 SELECTIVE SERVICE SYSTEM... 7 0 7 7 0 7 7 0 7 US CUSTOMS................. 0 0 0 0 0 0 0 0 0 WHITE HOUSE COMMUNICATIONS AGENCY...... 0 35 35 0 35 35 0 35 35 PARTNERSHIP FOR FISCAL INTEGRITY (PFI)..... 61 32 93 61 32 93 61 32 93 AIRFORCE SECURITY MISSION (AFS).............. 1 0 1 1 0 1 1 0 1 TOTAL REIMBURSABLE....... 97 78 175 97 78 175 97 78 175 TOTAL OUTSIDE DOD............ 386 579 965 386 579 965 386 579 965

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SECTION 5 SCHEDULE OF MILITARY PERSONNEL ASSIGNED OUTSIDE DOD (END STRENGTH) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 E/S E/S E/S E/S E/S E/S OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL ASSIGN TO DOD IN SUPPORT NON-DOD FUNCTIONS FOREIGN MILITARY SALES.... 204 191 395 204 191 395 204 191 395 ASSIGN TO DOD IN SUPPORT OF DOD FUNCTIONS DEPOT MAINT............... 19 5 24 19 5 24 19 5 24 INFO SERVICES............. 0 0 0 0 0 0 0 0 0 ORDNANCE.................. 15 6 21 15 6 21 15 6 21 SUPPLY MGMT............... 10 6 16 10 6 16 10 6 16 OTHER..................... 0 0 0 0 0 0 0 0 0 SUBTOTAL AWCF............ 44 17 61 44 17 61 44 17 61 DECA...................... 10 1 11 10 1 11 10 1 11 DFAS...................... 60 195 255 60 195 255 60 195 255 DISA...................... 6 12 18 6 12 18 6 12 18 DLA....................... 130 66 196 130 66 196 130 66 196 TRANSCOM.................. 125 25 150 125 25 150 125 25 150 OTHER..................... 0 0 0 0 0 0 0 0 0 SUBTOTAL DWCF............ 331 299 630 331 299 630 331 299 630 DEFENSE HEALTH PROGRAM..... 0 0 0 0 0 0 0 0 0 OTHER AGENCIES............. 258 575 833 258 575 833 258 575 833 ENLISTED SUBSISTENCE...... 0 0 0 0 0 0 0 0 0 PCS....................... 0 0 0 0 0 0 0 0 0 OMPC...................... 0 0 0 0 0 0 0 0 0 MISCELLANEOUS............. 0 0 0 0 0 0 0 0 0 SUBTOTAL OTHER NON-STRENGTH............ 0 0 0 0 0 0 0 0 0 TOTAL ASSIGN TO DOD IN SUPPORT OF DOD FUNCTIONS..... 633 891 1,524 633 891 1,524 633 891 1,524 TOTAL REIMB.................. 934 1,160 2,094 934 1,160 2,094 934 1,160 2,094 TOTAL NONREIMB............... 289 501 790 289 501 790 289 501 790 GRAND TOTAL.................. 1,223 1,661 2,884 1,223 1,661 2,884 1,223 1,661 2,884

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SECTION 5 REIMBURSABLES FOR BUDGET REVIEWS (IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OUTSIDE DOD REIMBURSABLE AMERICAN BATTLE MONUMENTS COMM............. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 CLASSIFIED ACTIVITIES...... 1,360 563 1,923 1,788 585 2,373 1,848 606 2,454 DEPARTMENT OF STATE........ 523 0 523 688 0 688 710 0 710 FBI........................ 209 0 209 275 0 275 284 0 284 INS........................ 0 0 0 0 0 0 0 0 0 LAW ENFORCEMENT SUPPORT OFFICE............. 209 0 209 275 0 275 284 0 284 NASA....................... 627 0 627 825 0 825 852 0 852 SELECTIVE SERVICE SYSTEM... 732 0 732 963 0 963 994 0 994 US CUSTOMS................. 0 0 0 0 0 0 0 0 0 WHITE HOUSE COMMUNICATIONS AGENCY...... 0 1,991 1,991 0 1,861 1,861 0 1,927 1,927 PARTNERSHIP FOR FISCAL INTGRITY (PFI)...... 0 1,791 1,791 0 1,791 1,791 0 1,791 1,791 AIR FORCE SECURITY MISSION (AFS)..... 105 0 105 137 1,861 1,998 142 0 142 TOTAL OUTSIDE DOD REIMBURSABLE............. $ 3,765 $ 4,345 $ 8,110 $ 4,951 $ 6,098 $ 11,049 $ 5,114 $ 4,324 $ 9,438

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SECTION 5 REIMBURSABLES FOR BUDGET REVIEWS (IN THOUSANDS OF DOLLARS) ACTUAL FY 2005 ESTIMATE FY 2006 ESTIMATE FY 2007 OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL OFFICER ENLISTED TOTAL ASSIGN TO DOD IN SUPPORT OF NON-DOD FUNCTIONS FOREIGN MILITARY SALES.... $ 35,810 $ 27,153 $ 62,963 $ 35,729 $ 17,768 $ 53,497 $ 37,163 $ 20,499 $ 57,662 ASSIGN TO DOD IN SUPPORT OF DOD FUNCTIONS DEPOT MAINT............... $ 1,582 $ 733 $ 2,315 $ 1,582 $ 733 $ 2,315 $ 1,582 $ 733 $ 2,315 INFO SERVICES............. 0 0 0 0 0 0 0 0 0 ORDNANCE.................. 1,184 265 1,449 1,184 265 1,449 1,184 265 1,449 SUPPLY MGMT............... 833 292 1,125 833 292 1,125 833 292 1,125 OTHER..................... 0 0 0 0 0 0 0 0 0 SUBTOTAL AWCF............ 3,599 1,290 4,889 3,599 1,290 4,889 3,599 1,290 4,889 DECA...................... $ 665 $ 30 $ 695 $ 692 $ 31 $ 723 $ 719 $ 32 $ 751 DFAS...................... 3,655 10,963 14,618 3,798 11,390 15,188 3,946 11,834 15,780 DISA...................... 537 431 968 558 448 1,006 580 465 1,045 DLA....................... 12,565 2,563 15,128 13,055 2,663 15,718 13,564 2,767 16,331 TRANSCOM.................. 11,918 5,924 17,842 12,383 6,155 18,538 13,892 6,396 20,288 OTHER..................... 0 0 0 0 0 0 0 0 0 SUBTOTAL DWCF............ 29,340 19,911 49,251 30,486 20,687 51,173 32,701 21,494 54,195 DEFENSE HEALTH PROGRAM..... $ 82,313 $ 26,343 $ 108,656 $ 106,583 $ 34,347 $ 140,930 $ 120,531 $ 33,852 $ 154,383 OTHER AGENCIES............. $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 ENLISTED SUBSISTENCE...... $ 0 $ 24,440 $ 24,440 $ 0 $ 34,463 $ 34,463 $ 0 $ 35,808 $ 35,808 PCS....................... 639 1,490 2,129 652 1,521 2,173 666 1,553 2,219 OMPC...................... 0 133 133 0 0 0 0 0 0 MISCELLANEOUS............. 0 0 0 0 0 0 0 0 0 SUBTOTAL OTHER NON-STRENGTH............ 639 26,063 26,702 652 35,984 36,636 666 37,361 38,027 TOTAL ASSIGN TO DOD IN SUPPORT OF DOD FUNCTIONS..... 115,891 73,607 189,498 141,320 92,308 233,628 157,497 93,997 251,494 GRAND TOTAL.................. $ 155,466 $ 105,105 $ 260,571 $ 182,000 $ 116,174 $ 298,174 $ 199,774 $ 118,820 $ 318,594

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DEPARTMENT OF THE ARMY - GlobalSecurity.org...o FY 2006: The Army projects to end FY 2006 with end strength of 498,700 or 16,300 (7,800 work-years) above the baseline budget request